Crypto Industry Rallies Behind House Bill as It Heads Toward Final Vote (2024)

Policy

The so-called FIT21 legislation to establish a U.S. regulatory regime for digital assets is set for a floor vote next week, and the sector is telling House leaders the effort is "crucial."

By Jesse Hamilton

Crypto Industry Rallies Behind House Bill as It Heads Toward Final Vote (1)May 17, 2024 at 2:44 p.m. UTC

Updated May 17, 2024 at 3:29 p.m. UTC

Crypto Industry Rallies Behind House Bill as It Heads Toward Final Vote (2)

Crypto Industry Rallies Behind House Bill as It Heads Toward Final Vote (3)

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  • A wide swath of the crypto industry signed a letter to the top lawmakers in the U.S. House of Represenatives, explaining why they should get behind the Financial Innovation and Technology for the 21st Century Act.

  • As House lawmakers are poised for a floor vote next week on the bill, the letter says passage would help the U.S. keep up with global competitors.

The U.S. House of Representatives is on the verge of a vote that will represent the closest the cryptocurrency industry has ever been toward finally winning regulation in the U.S., and the sector's associations and top businesses are encouraging House leaders to support the effort.

Through the Crypto Council for Innovation, a coalition of digital assets organizations and companies, including Coinbase, Kraken, Andreessen Horowitz, the Digital Currency Group and about 50 others, wrote a letter to Speaker of the House Mike Johnson (R-La.) and Minority Leader Hakeem Jeffries (D-N.Y.), advocating for passage of the bill. The Financial Innovation and Technology for the 21st Century Act (FIT21) has been authorized for floor time next week, where observers are hoping to see a mid-week vote.

The bill would set the Commodity Futures Trading Commission (CFTC) as a leading regulator of digital assets, and it sets out clear divisions for what the CFTC will handle and what would fall under the reach of the Securities and Exchange Commission (SEC). It would establish consumer protections – including rules around custody of customers' assets and their treatment in bankruptcy – and set up further guardrails against risky behavior.

"By passing this legislation, we can accelerate the growth of blockchain technology and digital assets, fostering financial inclusion and protecting national security," according to the letter. "It is crucial for the U.S. to maintain its leadership in financial innovation."

The crypto industry is on a high in Washington at the moment, having watched both the House and Senate easily pass a resolution overturning a crypto accounting policy from the SEC, though President Joe Biden vowed to veto the effort. That move to erase the SEC's Staff Accounting Bulletin 121 (SAB 121) represented a fight that went decidedly in the industry's favor, drawing many supporters from the Democratic Party that's been more reticent than Republicans in backing crypto.

For that accounting tussle, more than one in five Senate Democrats voted on the industry's side, including Majority Leader Chuck Schumer (D-N.Y.), and it was about one in 10 Democrats in the House.

But the comprehensive legislation now approaching a House vote is of a much higher magnitude, and key Senate Democrats have so far seemed unprepared to match the House's effort. To date, the Senate has only shown a potential willingness to fit a different crypto bill – one regulating stablecoin issuers – into a package deal with other financial legislation.

Rep. Patrick McHenry (R-N.C.), the chairman of the House Financial Services Committee where the bill was launched, said the level of Democratic support for FIT21 in the House could be a major factor in whether the Senate is moved to action. When the measure cleared his committee, it did so with a handful of Democrats on board, despite opposition from their senior member, Rep. Maxine Waters (D-Calif.)

On its way toward the floor, the FIT21 effort drew a range of amendments called for by the House Rules Committee to meet a May 16 deadline.

Edited by Nikhilesh De.

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Jesse Hamilton

Jesse Hamilton is CoinDesk's deputy managing editor for global policy and regulation. He doesn't hold any crypto.

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Crypto Industry Rallies Behind House Bill as It Heads Toward Final Vote (2024)

FAQs

What is the FIT21 crypto bill? ›

Bill strengthens federal oversight of digital assets

4763, the Financial Innovation and Technology for the 21st Century Act (FIT21). The legislation creates new consumer protections and divides oversight of the digital assets industry between the CFTC and the SEC.

What is FIT21? ›

The bill, called the Financial Innovation and Technology for the 21st Century Act, or FIT 21, creates a path for cryptocurrencies to be exempt from many securities regulations if they achieve a sufficient level of decentralization, among other things.

What is the US bill on cryptocurrency? ›

May 22 (Reuters) - The U.S. House of Representatives on Wednesday passed a bill that aims to create a new legal framework for digital currencies, despite an unusual warning from the U.S. securities regulator it could create new financial risks.

How much is the most expensive cryptocurrency? ›

The highest priced coins
CoinRankMarket cap
BTC11.322 T USD
WBTC14010.431 B USD
YFI243233.103 M USD
CORE48161.004 M USD
55 more rows

Did the FIT21 bill pass? ›

Driving the news: The Financial Innovation and Technology for the 21st Century Act, known on the Hill as FIT 21, passed in the House Wednesday afternoon by a vote of 279-136, with 71 Democrats voting in favor.

Will FIT21 pass the senate? ›

The Chances of FIT21 Becoming Law Are Low.

Many bills from the House Financial Services Committee pass the House with even larger vote totals than FIT21 and still are not considered by the Senate. There is not a Senate companion bill for FIT21, and it is unlikely that the Senate will vote on the bill.

Who voted for FIT21? ›

Overall, 71 Democrats and 208 Republicans voted in favor of the bill, versus 3 Republicans and 133 Democrats who voted against.

Does crypto pay you? ›

Cryptocurrency can be used to earn interest through the distributed finance economy. Anyone in the world with the right accounts or technical knowledge can participate. Cryptocurrency lending and earning platforms feature unique risks and are not insured or backed by any government agency.

Why use crypto to pay? ›

Cryptocurrency is considered more secure than credit and debit card payments. This is because cryptocurrencies do not need third-party verification. When a customer pays with cryptocurrency, their data isn't stored in a centralized hub where data breaches commonly occur.

What is the cryptocurrency price? ›

Coin Name (Code)PriceChange (24h)
Bitcoin(BTC)₹ 51,70,064▲ +39,752 +0.77%
Ethereum(ETH)₹ 2,86,237▲ +6,236.94 +2.23%
Tether(USDT)₹ 79.19▲ +0.01 +0.01%
Binance Coin(BNB)₹ 46,455▼ -1,214.6 -2.55%
60 more rows

What currency is cryptocurrency? ›

A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet.

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