News
The future of the FIT21 law after the vote in the Chamber
The United States House of Representatives will vote on a new bill: the Financial Innovation and Technology for the 21st Century Act, or FIT21 – which would establish a regulatory framework for the cryptocurrency market.
Bitcoin Cryptocurrencies (BTC-USD) and ethereum (ETH-USD) I am going higher with this news as the Securities and Exchange Commission (SEC) also approaches a deadline for possible approval of an ether ETF.
Yahoo Financial Reporter Jennifer Schonberger provides the latest updates on crypto legislation and what it could mean for digital assets as a whole.
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This post was written by Luke Carberry Mogan.
Video transcription
Bitcoin and Ethereum are rebounding this week as we just heard as lawmakers vote on new cryptocurrency legislation.
Yahoo Finance’s Jennifer Schonberger is here with more details.
Hi, Jen, good afternoon, Julie.
It’s great to see you and it’s a watershed moment for the cryptocurrency industry.
The House will soon vote for the first time on legislation that would create a comprehensive regulatory framework for digital assets.
Legislation called the Financial Innovation and Technology for the 21st Century Act or Fit 21 for short is one that House Financial Services Chairman Patrick McHenry has been pushing for much of the year, and the cryptocurrency industry strongly favors legislation that would establish the Commodities Futures Trading Commission as the primary regulator of digital assets.
There would be clear divisions over what the CFTC would regulate and what would fall under the purview of the SEC.
It would also establish consumer protections and prevent the kind of commingling of customer funds that played a role in the destruction of the FDX cryptocurrency exchange.
In 2022 Republican lawmakers see this legislation creating much more clarity for the cryptocurrency industry, but most Democrats led by Max Waters, ranking member of the House Financial Services Committee, oppose this bill law.
Waters warns that the bill would effectively deregulate most cryptocurrencies by removing them from the purview of the SEC.
Now, in a rare rebuke, CC Chairman GG, who has initiated numerous enforcement actions against the cryptocurrency industry, criticized this legislation in a statement today saying it would create new regulatory gaps and undermine decades of precedent regarding oversight of investment contracts, putting investors and capital markets at immeasurable risk.
Now, the vote on F 21 is expected around 5pm here in Washington.
This legislation is expected to pass the House with support from Republicans and a handful of Democrats, but support in the Senate remains tenuous at this point.
Uh Mchenry told reporters late yesterday afternoon that he hopes a strong vote count in the House will galvanize the Senate to take a fresh look at this legislation.