Tech
US Lawmakers Pass FIT21 Cryptocurrency Bill That Could Regulate SEC Involvement in Industry Oversight
US lawmakers gathered to vote in favor of a cryptocurrency bill, called the Financial Innovation and Technology for the 21st Century Act (FIT21). In a rather historic moment, 279 out of 136 members of the US House of Representatives gave the green light to this bill on May 22. In the United States, the House of Representatives is responsible for making laws and, together with the United States Senate, making up the two houses of Congress.
The United States has finally joined the list of nations, along with India, Japan and South Korea, among others, that are working to bring the volatile and exploitable digital resources sector under regulatory control. The FIT21 bill aims to clarify which authorities have how much control over the cryptocurrency sector, so that the sector is protected but not at the cost of slowing its growth.
The FIT21 bill reportedly indicates distinctive definitions for different categories of cryptocurrencies, so that exchanges know which assets are viewed as securities. This clarification would avoid clashes with cryptocurrency exchanges such as Binance AND CoinBase with the SEC, which influence the growth of the cryptocurrency industry.
It also ensures that monitoring of the digital assets industry is split between the Commodity Futures Trading Commission and the Securities and Exchange Commission (SEC). According to reports, the CFTC may see more involvement in cryptocurrency oversight than the SEC, which has been repeatedly accused of attacking the cryptocurrency industry under the leadership of Gary Gensler.
Gensler expressed opposition to the bill reportedly stating: “The cryptocurrency industry’s record of failures, frauds and failures is not due to a lack of rules or the rules being unclear. It’s because many players in the cryptocurrency industry don’t play by the rules.”
Players and stakeholders in the US crypto industry, however, are celebrating the passage of the FIT21 bill. Brain Armstrongthe CEO of Coinbase along with others posted about the development on X and many called this vote “historic” for the cryptocurrency industry.
Historic vote today in the House of Representatives on the FIT21 bill, which will finally begin to create clear rules to regulate cryptocurrencies (if it becomes law).
Americans want to know that their representatives are protecting their rights to use cryptocurrencies by creating clear rules for…
—Brian Armstrong (@brian_armstrong) May 22, 2024
FIT21 passes Chamber 279 – 136 :tada:
Votes in favor in the House of Democrats: 71.
This is a *huge* number of elected Democrats voting “no confidence” in the current SEC and sending a message to the Biden administration that “anti-cryptocurrency” is a losing platform this year. pic.twitter.com/zmlD1VRQfF
—Jake Chervinsky (@jchervinsky) May 22, 2024
Today the House of Representatives made history by passing the Financial Innovation and Technology for the 21st Century Act (FIT21). The success of FIT21 is proof that the protection of blockchain technology in the United States enjoys strong bipartisan support.
It is an important step to provide…
— cdixon.eth (@cdixon) May 22, 2024
The bill will now be brought to the Senate for approval, after which it will become law.
In light of this development, the cryptocurrency price chart on Thursday, May 23, showed profits close to those of most cryptocurrencies. CoinMarketCapBitcoin and Ether are trading at $69,485 (around Rs. 57.8 lakh) and $3,789 (around Rs. 3.15 lakh), respectively.
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