Cryptocurrency investors are welcoming a newly approved bill by the US House of Representatives. The bill passed following a vote, yet it faces a challenging path ahead. The Biden administration indicated that while the crypto bill won’t be outright rejected, it contains substantial gaps. Furthermore, the Securities and Exchange Commission (SEC) has expressed clear opposition to the bill.
What Does the Crypto Bill Include?
Named the Financial Innovation and Technology Act for the 21st Century (FIT21), the legislation has been hailed as historic by many in the crypto industry. Coinbase CEO Brian Armstrong described the vote as “historic” and emphasized that if passed, the bill would finally establish clear regulations for the crypto sector. After being approved by the House, the bill will now proceed to the Senate and then to President Biden.
The House passed the Financial Innovation and Technology Act for the 21st Century with a vote count of 279-136. The vote saw strong support from Democrats, which complicates matters for President Biden, as some senior Democrats hold different views than him. The US has been lagging compared to other global jurisdictions in forming crypto regulations, and the bill’s fate in the Senate remains uncertain.
Why Is There Opposition?
During the vote, Representative Maxine Waters, the leading Democrat on the House Financial Services Committee, emphasized the need for updated rules, contrasting SEC Chairman Gary Gensler’s stance that existing 100-year-old regulations should still apply to the crypto market. The bill was primarily drafted by Republicans and aims to establish a framework to regulate the U.S. crypto markets.
User-Usable Insights
Key insights from the bill include:
- Implementation of a regulatory mechanism for U.S. crypto markets.
- Introduction of investor protection rules.
- Empowerment of the Commodity Futures Trading Commission (CFTC) to regulate crypto assets not classified as securities or investment contracts.
- Precise definitions for commodity and security terms, potentially resolving most current crypto-related legal disputes.
As the legislation advances to the Senate, its future remains uncertain. With the ongoing debate between various stakeholders, the path to comprehensive crypto regulation in the U.S. is still unfolding.