Bitcoin (BTC-USD) and Ethereum (ETH-USD) are rising this week as investors are optimistic about a new regulatory framework and the approval of an Ether ETF that could boost the industry. Yahoo Finance reporter Jennifer Schonberger details new legislation that could change the crypto sector.
The House of Representatives is scheduled to vote today for the first time on the crypto bill, known as the Financial Innovation and Technology for the 21st Century Act (FIT21). The legislation would make the Commodity Futures Trading Commission (CFTC) the primary regulator for digital assets and establish consumer protections.
While Republican lawmakers say FIT21 will bring transparency to the crypto industry, Democrats believe it will effectively deregulate most cryptocurrencies by removing them from the jurisdiction of the Securities and Exchange Commission (SEC).
The vote is expected to take place around 5pm ET today and is expected to pass, but FIT21's future in the Senate remains unclear.
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This post was written by Melanie Leal
video transcript
Next, let's look at cryptocurrencies, both Bitcoin and Ethereum.
Stocks rose this week, with investors looking to Washington, D.C., in hopes that regulation and new products could expand the industry's mainstream reach.
Join us now and make it our mission to uncover what's on the crypto table in Washington.
Jennifer Schomer, Jen.
Good morning, Shanna.
That is correct.
The crypto industry is hoping to see some gains this week from efforts in Washington to pass a new regulatory framework and approve E-ETFs.
Today, the House of Representatives is scheduled to vote for the first time on a comprehensive cryptocurrency bill known as the Financial Innovation and Technology for the 21st Century Act, or Fit21 for short.
The bill, which Financial Services Chairman Patrick Muchenley has been pushing for the better part of a year, would establish the future of the product and position the agency as the lead regulator for digital assets.
There will likely be a clear separation of what the CFTC will regulate, and what falls under the authority of the Securities and Exchange Commission, which has cracked down on the cryptocurrency industry with repeated enforcement actions.
The legislation would also establish consumer protections and reinstate a type of commingling of custom funds that played a role in the breakup of cryptocurrency exchange FTX in 2022.
Now, Republican lawmakers say the bill will bring transparency to the cryptocurrency industry.
However, most Democrats, led by ranking member of the House Financial Services Committee, Maxine Waters, oppose the bill, which Waters said would exempt most cryptocurrencies from the SEC's jurisdiction. The government warns that this will effectively lead to deregulation.
Secretary Gary Ginsler released a lengthy statement about the bill this morning in a rare rebuke, saying, quote, the bill creates new regulatory gaps and undermines decades of precedent regarding the oversight of investment contracts. It said it would expose capital market investors to measurable risks. .
The House is scheduled to vote on the bill around 5 p.m. today, and it is expected to pass the floor thanks to support from mostly Republicans and a few Democrats.
But prospects in the Senate remain.
DeMar McCenley told reporters late yesterday afternoon that he hoped the positive vote result would galvanize the Senate to take a fresh look at the bill.
Meanwhile, elsewhere here in Washington, the SEC reportedly has a deadline of tomorrow, May 23, to approve or disapprove the E ETF, but when I asked the SEC for comment, said he would not comment.
