The US House of Representatives passed the 21st Century Financial Innovation and Technology Act, known as the FIT21 Act, on Wednesday night, making it the second cryptocurrency-focused bill to be considered by Congress this month.
The bill passed by a vote of 279 to 136. 71 Democrats voted in favor of the bill.
Lawmakers considered three amendments to the bill introduced by Rep. Greg Cassar, D-Texas, Rep. Brittany Pettersen, D-N.C., and Rep. Ralph Norman, R-R.C.
Cazale's amendment, which would have lowered the crowdfunding limit imposed on crypto entities from $75 million to $5 million, failed to pass.
The amendment proposed by Rep. Pettersen and Rep. Norman moved forward.
Norman's amendment would require the Treasury Department, CFTC, and Securities and Exchange Commission to complete a joint investigation and submit a report to Congress identifying digital asset businesses owned by “foreign hostile governments.” said Norman.
Norman said the amendment was prompted by China's involvement in Prometheum, which in 2023 became the first crypto company to receive a special purpose broker-dealer license from the SEC.
Pettersen’s amendment expands the scope of the Bank Secrecy Act to include digital asset entities within the definition of a “financial institution” and orders a study to assess the risks posed by centralized intermediaries in areas where anti-money laundering measures are “less strong.”
“This amendment, combined with the underlying legislation, will strengthen oversight of digital asset markets and support regulators' efforts to protect consumers and investors,” Pettersen said during Wednesday's debate. said. “While there is still work to do to ensure the integrity of digital asset markets, this amendment is an important step forward.”
FIT21 now heads to the Senate. The White House announced on Wednesday that it would oppose the bill, arguing that it “lacks sufficient protections for consumers and investors engaging in certain digital asset transactions.” The May 22 notice did not specify that President Joe Biden would veto the bill if it reached his desk.
The comments came shortly after Biden's team announced last week that the White House would block Joint Resolution 109, which sought to overturn the SEC's Staff Accounting Bulletin (SAB) 121.
The resolution was delivered to the President's desk last week after receiving bipartisan support in both the House and Senate.
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