The Blockchain Association urged a full House floor vote of the Financial Innovation and Technology for the 21st Century Act (FIT21) in a Monday letter to House Speaker Mike Johnson and Minority Leader Hakeem Jeffries.
Blockchain Association Pushes House Floor Vote For FIT21
FIT21 (also known as H.R. 4763) is expected to be voted on in the chamber sometime this week. Its potential passage in both the House and the Senate would mark the first time the U.S. has seen crypto-oriented regulation.
The letter, undersigned by crypto heavyweights including Ripple, Kraken, and Circle, pushes for a House vote on the legislation, citing the need for “legislation that offers a framework for innovation, regulatory clarity for U.S. operators, and protection for users and consumers.”
1/ Today, @BlockchainAssn members sent a letter to @SpeakerJohnson and @RepJeffries in support of a floor vote for the Financial Innovation and Technology for the 21st Century Act (#FIT21).https://t.co/RhBfe9Gg5p pic.twitter.com/BUoEnoOEAD
— Blockchain Association (@BlockchainAssn) May 20, 2024
“Since the inception of the Bitcoin network in 2009, the blockchain and digital asset industry has existed without targeted market regulation,” the letter to Jeffries and Johnson read. “The absence of clear rules leads to confusion in the marketplace for companies – and leaves users and consumers unprotected.
U.S. Under Fire For Unclear Crypto Regulations
U.S. regulators have been scrutinized for their treatment of the crypto sector. The United States Securities and Exchange Commission (SEC) is often criticized for its regulation-by-enforcement approach.
Critics claim that the stringent anti-crypto atmosphere may drive American businesses overseas and stifle the country’s technological advancement.
“This lack of clarity impedes innovation and hamstrings companies, harming America’s standing in the global technology race,” the Blockchain Association’s letter continued. “We are seeking pro-innovation and pro-consumer guardrails to ensure a fair and safe marketplace and to safeguard U.S. technological leadership in this cutting edge space.”
If passed, FIT21 would see the majority responsibility of digital asset regulation delegated to the Commodities Future Trading Commission (CFTC) while increasing legal protections for consumers of crypto.
Congressional Momentum Around Crypto Builds After SAB121 Resolution
News of Monday’s letter comes amid increasing momentum for effective crypto legislation following Congress’ approval of a resolution that would potentially remove the SEC’s controversial accounting bulletin, SAB121, from its guidance.
Previously, President Joe Biden alleged that he would ultimately veto the attempt to disavow SAB121, citing “substantial financial instability and market uncertainty” should he sign off on the resolution.
The strong bipartisan support against the SEC’s crypto guidance may force Biden to rethink his stance, however.
Should Fit21 follow suit, it could signal a new era of digital asset regulation across the United States, with greater freedoms allotted to players in the crypto space.