Republican lawmakers announced that the US House will vote this week on a bill clarifying financial regulators’ roles regarding digital assets.
Legislators from the Republican-controlled House Financial Services Committee have declared that a vote on legislation this week will clarify the responsibilities of financial regulators regarding digital assets.
House Republicans stated in a 20 May X post that the Financial Innovation and Technology for the 21st Century (FIT21) Act will be put to a vote by the entire chamber “this week,” thereby increasing the bill’s chances of becoming law.
The legislation would establish clearer regulations regarding digital assets by the U.S. Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC).
Significant progress has been made on the legislation since July 2023, when the House Financial Services Committee approved the FIT21 bill. Patrick McHenry, chairman of the House Committee on Rules, stated in May that the measure could be adjourned to the full chamber for a vote.
The bill has already garnered support from industry advocates and House members. If passed, it would be one of the limited number of pieces of legislation this session that specifically addresses cryptocurrencies.
Additionally, it is anticipated that President Joe Biden will either ratify a joint resolution passed in May to repeal an SEC rule governing the manner in which banks must manage digital assets or veto it.
Both the Blockchain Association and the Crypto Council for Innovation have urged House leadership to support the passage of FIT21. The Blockchain Association stated that “pro-innovation and pro-consumer guardrails” were necessary for the United States to advance this legislation. The likelihood that a majority of legislators will support the measure remains uncertain.
Despite the Republicans’ narrow majority in the House, twenty-one Democrats joined them on May 8 in support of the resolution that would nullify the SEC accounting rule.
“Although FIT21 is not an ideal bill (no bill is! ), this is a historic and crucial step toward establishing a federal regulatory framework for digital assets in the United States,” Sheila Warren, CEO of the Crypto Council for Innovation.
Politics may also influence legislators’ yea or nay votes on FIT21. Numerous state primaries have already commenced in preparation for the 2024 United States presidential election.
As Election Day approaches, certain legislators, including Senator Elizabeth Warren, have emphasized their stances on the regulation and supervision of digital assets. Additionally, Representative McHenry will cast his vote on the measure; however, he has no intention of re-electing in November.
