Cryptocurrency investors favor the newly approved bill by the US House. The bill passed after the vote. However, there is still a long way to go. Today, Biden’s administration stated that the crypto bill would not be rejected but has significant gaps. Additionally, the SEC clearly opposes this bill.
Crypto Bill Passed by the House
The Financial Innovation and Technology Act for the 21st Century, or FIT21, was described as historic by many. Coinbase CEO Brian Armstrong called FIT21 a “historic vote” and stated that if passed, it would “finally start creating some clear rules to regulate crypto.” The bill, recently passed by the House, will now go to the Senate and Biden.
The Financial Innovation and Technology Act for the 21st Century was approved with a vote of 279-136. Democrats strongly supported the vote. This is precisely what ties Biden’s hands, as senior Democrats think differently from Biden. The US has lagged behind other global jurisdictions in creating crypto regulations, and it is uncertain what will happen in the Senate.
Representative Maxine Waters, the most senior Democrat on the House Financial Services Committee, stated during the vote, “we need the rules of this road,” expressing a viewpoint contrary to SEC Chairman Gensler’s belief that 100-year-old rules should still apply here.
The legislation, largely crafted by Republicans, will:
- Establish a mechanism to regulate US crypto markets.
- Set investor protection rules.
- Allow the CFTC to regulate crypto assets outside of securities/investment contracts.
- Clearly define commodity and security terms. This is crucial as it could dismiss most current crypto cases.
