House Financial Services Committee Chairman Patrick McHenry said a new bill to provide greater clarity for the cryptocurrency industry regarding regulatory oversight is expected to be voted on in the House by the end of May.
The bill, called the 21st Century Financial Innovation and Technology (FIT21) Act, aims to provide a clear regulatory framework for digital assets and address long-standing issues of market oversight and consumer protection.
desperately needed law
On May 10, McHenry announced that as a result of the review process,Pass much-needed legislation with the floor time it deserves.”
he added:
“FoFor too long, the U.S. digital asset ecosystem has been plagued by regulatory uncertainty that has stifled innovation and left consumers unprotected. ”
Crypto Council CEO Sheila Warren explained The review is expected to take place the week of May 20th.
the house rules committeeThe bill, made up of nine Republicans and four Democrats, is based on “structured rules” that determine which amendments can be considered and the time set for each side's debate. It is highly likely that the bill will be considered.
of Committee determine whether FIT21 requires a floor vote by the end of May. The bill also needs to pass the Senate and the president.
Distinction between SEC and CFTC
FIT21 gives CFTC jurisdiction over crypto products and assigns SEC jurisdiction than the virtual currency provided within the investment contract..
The bill explicitly aims to establish “a clear line between the SEC and the CFTC.” The SEC's continued expansion of enforcement activity has been highly controversial in recent years, so FIT21 is likely to address one of cryptocurrencies' hottest controversies.
This distinction is intended to assist in how virtual currency developers raise capital and clarify whether their activities are subject to CFTC or SEC oversight.
In addition to separating the regulator's role, the bill also creates a process to allow secondary market trading of crypto products originally offered in investment contracts.
FIT21 also establishes rules for companies that must register with the SEC and CFTC, including customer disclosure, asset protection, and operational requirements.
House Agriculture Committee Speaker Glenn Thompson, Whip Tom Emmer, French Hill, Dusty Johnson, and Warren Davidson introduced the bill in July 2023.
