FIT21 Act Passes House: A Milestone for US Digital Asset Regulation
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The United States House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) with substantial bipartisan support. This crucial legislation aims to provide regulatory clarity and consumer protection for the fast-growing digital asset market in the United States.
Bipartisan Support for FIT21
The FIT21 Bill, officially H.R. 4763, got 278 affirmative votes from the House, comprising 208 Republicans and 70 Democrats. On the opposing side, it received 136 votes in opposition, out of which 3 were Republicans and 133 Democrats. Passage of FIT21 marks a key step towards solidifying America’s digital asset innovation and regulation leadership.
The House Financial Services Committee issued a press release celebrating the passage of FIT21. Chairman Patrick McHenry said, “Today, the House took a historic step by passing FIT21 with broad, bipartisan support. FIT21 provides the regulatory clarity and robust consumer protections necessary for the digital asset ecosystem to thrive in the United States.”
Chairman Glenn “GT” Thompson said, “Clarity in digital assets is crucial. Today’s bipartisan passage of the Financial Innovation and Technology for the 21st Century Act is a significant milestone. It underscores the House Committees on Agriculture and Financial Services’ efforts to establish a much-needed regulatory framework.”
Several members of Congress have expressed support for FIT21. Congressman John Roe criticized the current regulatory approach and said,
“I’ve had enough of Biden Administration officials regulating by enforcement. That’s why I support FIT21, legislation preventing the government from standing in the way of digital innovation.”
Congressman Tom Emmer mentioned the bill’s broader implications, saying, “FIT21 unlocks a conversation beyond innovation. It’s about national security, consumer protection, and global competitiveness.”
The primary sponsor of the bill, Representative French Hill, said that it was aligned with previous government calls for regulatory frameworks, citing, “FIT21 is responsive to both President Biden’s own Executive Order and the FSOC report calling on Congress to enact a framework for digital assets.”
Criticisms of the Bill
Despite the broad support, Congressman Brad Sherman opposed this bill, stating that it could create a competitor to the US Dollar used by criminals around the world.
Moreover, two crypto analysts noted out certain key features that might case difficulties in the present crypto industry.
Crypto analyst Matt notes, “The FIT21 bill doesn’t mention DEXs specifically but it could be bad. Maybe we just make a new term or acronym that doesn’t have the word ‘exchange’ in it.”
Another crypto analyst going by his pen name, ‘Vet’, pointed out, “Why is no one posting about what is actually in the FIT21 bill? I’m not hearing anyone talk about the over 150 mentions of decentralization and the decentralization test described. Also, not hearing anyone mention anything about the consensus mechanics discussed.”
Decnralised financier at Combine Capital, Keegan, who has his former experience working with BlackRock and Fidelity, casted an unpopular opinion that “FIT21 getting shot down in the Senate is best case scenario” Instead, he counts Congress overturning SAB 121 and the SEC approving ETH ETFs would be genuine regulatory wins.
Next Step: Senate Consideration
With the passage of FIT21 in the House, all focus now is on the Senate. This vote demonstrates strong support, urging the Senate and the Administration to take action immediately. Rep. Dusty Johnson, R-S.D., said, “Today’s victory gets us one step closer to establishing clear rules of the road for developers in the industry so America can remain a global hub for tech and finance innovation.”
