The House of Representatives has approved a comprehensive bill aimed at creating regulations for digital asset markets, marking the Democrats’ largest political victory to date with a vote of 279 to 136.
The Financial Innovation and Technology Act for the 21st Century (FIT21) will now go to the U.S. Senate, but its fate remains uncertain as there is no counterpart bill. The uncertainty persists over whether the bill will garner support.
The U.S. has lagged behind other global jurisdictions in crypto regulations, and despite yesterday’s victory, the implementation of such oversight remains far off.
Democratic Representative Josh Gottheimer (DNJ) and senior Democratic Representative Maxine Waters of the House Financial Services Committee, both of whom opposed the White House’s opposition, referred to the bill as a “well-reasoned, thoughtful, bipartisan bill,” stating, “We need rules.” They argued that the bill was “legislatively ready for passage if worked together.”
71 Democrats and 208 Republicans voted in favor of the bill, while 3 Republicans and 133 Democrats voted against it.
While President Joe Biden did not say he would veto the bill, he opposed it, stating his concerns that it would undermine the Securities and Exchange Commission’s (SEC) efforts to establish crypto accounting policies. SEC Chairman Gary Gensler also vehemently opposed the legislation in a lengthy public statement, arguing that it was unnecessary and jeopardized existing securities regulations.
The largely Republican-led House bill will establish a regime to regulate U.S. crypto markets, set consumer protections, and position the Commodity Futures Trading Commission (CFTC) as the primary regulator of digital assets. It will also provide a clearer definition of what constitutes a security or commodity for cryptocurrencies.
Waters argued that the bill was against crypto businesses that avoid securities laws, stating, “Crypto securities have made billions of dollars by illegally issuing or facilitating the sale of securities.”
“The Republicans are offering to formally reward these illegal activities by legalizing them.”
Source: investing.com
