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House Passes Cryptocurrency Regulation Bill, Aims for Senate Approval
The United States House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill aimed at regulating the cryptocurrency market.
Wednesday’s bipartisan vote resulted in 279 members, including 71 Democrats, supporting the bill, while 136 opposed it.
This bill, now before the Senate, could create a new regulatory framework for digital assets by strengthening oversight by the Commodity Futures Trading Commission (CFTC).
It also introduces guidelines for secondary market trading of digital commodities initially offered as investment contracts, as well as addressing the issue of stablecoins and anti-money laundering protocols.
Despite criticism from the White House that the bill lacks adequate safeguards for consumers and investors, the administration has shown that it is ready to work toward a regulatory framework for digital activities.
The passage of FIT21 signals a potential shift in Congress’s view of cryptocurrencies and their impact on the financial sector.
FIT21 met opposition SEC Chairman Gary Gensler, who argues that the bill could create regulatory loopholes and undermine investor protections.
The ranking Democrat on the House Financial Services Committee, Maxine Waters, also expressed concerns, arguing that the bill could overburden the CFTC and not provide enough regulatory authority.