The U.S. House of Representatives has approved a bill to regulate the cryptocurrency market, known as the Financial Innovation and Technology Act of the 21st Century (FIT21).
In a bipartisan vote on Wednesday, 279 senators, including 71 Democrats, supported the bill, while 136 opposed it.
The bill, currently before the Senate, would create a new regulatory framework for digital assets and potentially increase oversight by the Commodity Futures Trading Commission (CFTC).
The initiative also introduces guidelines for secondary market trading of digital goods that were initially offered as investment contracts, as well as support for stablecoins and anti-money laundering protocols.
While the White House has criticized the bill for lacking adequate protections for consumers and investors, the administration has indicated it is willing to work toward a regulatory framework for digital assets.
The passage of FIT21 signals a possible shift in Congress’s view of cryptocurrencies and their impact on the financial sector.
FIT21 faces opposition from SEC Chairman Gary Gensler, who argues that the bill could lead to regulatory loopholes and undermine investor protections.
Democrat Maxine Waters of the House Financial Services Committee also voiced concerns, arguing that the bill could overburden the CFTC and not provide sufficient regulatory authority.
