The House Financial Services Committee announced on Friday, May 10, its intent to consider the Financial Innovation and Technology for the 21st Century (FIT21) Act.
The announcement paves the way for a key floor vote later this month and demonstrates Congress' commitment to providing clarity and regulatory certainty for cryptocurrencies and other digital assets.
In its predictions on crypto regulation, crypto.news highlighted the FIT21 Act as one of the key laws to be addressed in 2024.
Speaker Glenn Thompson introduced the bill along with Representative French Hill, Representative Dusty Johnson, Representative Whip Tom Emmer, and Representative Warren Davidson. It aims to establish clear and functional federal requirements for the crypto market. We aim to clarify the consumer protections and regulations necessary for the growth of the U.S. cryptocurrency industry.
House Financial Services Committee Chairman Patrick McHenry emphasized the importance of the FIT21 Act in addressing years of regulatory uncertainty, saying, “For too long, the U.S. digital asset ecosystem has “It has been plagued by regulatory uncertainty that has stifled innovation and left consumers unprotected.”
“This comprehensive market structure bill is the culmination of years of bipartisan efforts to finally provide clarity,” McHenry added.
The FIT21 Act proposes several important measures to strengthen transparency, accountability, and consumer protection within the crypto asset ecosystem.
This gives the Commodity Futures Trading Commission (CFTC) new jurisdiction over crypto products.
It clarifies the Securities and Exchange Commission's (SEC) authority over digital assets offered as part of an investment contract.
Congressman French Hill emphasized the importance of this bill in light of recent market events, stating, “As the collapse of FTX showed, the rapidly growing digital asset ecosystem is safe for investors and consumers. “We need strong consumer protections and a functioning regulatory framework to ensure that this is the case.” While securing America as a leader in blockchain innovation. ”
Also reacting to the announcement, U.S. Rep. Ro Khanna from California's 17th Congressional District stressed to X that regulatory uncertainty is keeping innovation and job opportunities away from the United States.
He pledged to support the bill unless harmful amendments are made. Mr. Khanna also emphasized the importance of defining what constitutes securities and products and putting in place the necessary safeguards to protect consumers from fraud.
He expressed his willingness to support amendments to strengthen consumer protections as the bill progresses through the legislative process.
