The first-of-its-kind bill clears the House

CNN

The U.S. House of Representatives passed a crypto market structure bill on Wednesday evening that aims to regulate the industry at large.
The bill, “The Financial Innovation and Technology for the 21st Century Act” (FIT21), would effectively classify cryptocurrency as a commodity, not a security, and therefore exempt from securities regulations.
It would also determine oversight of cryptocurrencies, whether they should be regulated by the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
The crypto bill cleared the U.S. House despite criticism from SEC Chair Gary Gensler, who publicly expressed his opposition to it.
Yesterday, hours before the vote, the White House also expressed opposition to the bill, citing concerns due to inadequate investor protections.
President Biden released a statement saying that he is against the legislation, but he hasn’t threatened to veto it.
The bill must now gain approval from the Senate, but this will be challenging as the leading figures in the Democrat-controlled Senate have shown little interest in it.
There is a very low chance that the bill would become law in Congress, but it can shed light on how Democrats and Republicans view crypto regulation.

POSITIVE

The US. s. A bill aimed at regulating the cryptocurrency market structure was passed by the House of Representatives on Wednesday night.

By effectively classifying cryptocurrencies as commodities rather than securities, the bill known as “The Financial Innovation and Technology for the 21st Century Act” (FIT21) would exempt them from securities regulations. Additionally, it would decide who would be in charge of cryptocurrency oversight—the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC)?

With support from 71 Democrats, including former House Speaker Rep., the Republican-led bill—the first standalone legislation of its kind—passed the lower chamber by a vote of 279 to 136. California lawmaker Nancy Pelosi.

The crypto law was approved by the U. s. SEC Chair Gary Gensler, who openly opposed it, criticized the House nonetheless.

The statement made by Gensler was, “FIT21 would put investors and capital markets at immeasurable risk by creating new regulatory gaps and undermining decades of precedent regarding the oversight of investment contracts.”. Reiterating his position that cryptocurrencies are securities, he expressed concern that the bill would exempt investment contracts recorded on blockchains from the federal securities laws’ protections and the statutory definition of securities.

The White House opposed the bill yesterday, hours before it was put to a vote, citing concerns about its insufficient protections for investors. In a statement, President Biden expressed his disagreement with the bill, but he refrained from threatening to veto it.

Next, what?

The bill now needs Senate approval, which will be difficult because the majority of senators in the Democratic-controlled Senate have not expressed much interest in it.

Although there is very little chance that the bill will pass Congress, it can reveal differences in the perspectives of Republicans and Democrats regarding crypto regulation.

scroll to top