As the FIT21 bill heads towards a crucial vote in the United States House of Representatives next week, the cryptocurrency industry is rallying behind what could be a groundbreaking regulatory milestone. If passed, this bill has the potential to establish the US as a frontrunner in financial innovation, ensuring its competitiveness in the global digital asset arena.
FIT21 proposes that the Commodity Futures Trading Commission (CFTC) take on the primary regulatory role for cryptoassets, outlining its responsibilities in comparison to those of the Securities and Exchange Commission (SEC). The legislation aims to create a robust system of consumer safeguards, including specific guidelines for the safekeeping of customer assets and protocols in the event of bankruptcy, as well as preventative measures against risky market practices.
In a letter addressed to House Speaker Mike Johnson and Minority Leader Hakeem Jeffries, industry leaders such as Coinbase, Kraken, and Andreessen Horowitz expressed their support for the bill, stating that its passage could bolster blockchain technology and digital assets, promoting financial inclusion and safeguarding national security. This endorsement emphasizes the legislation’s significance in advancing technology and ensuring economic stability in the United States.
Furthermore, the industry recently celebrated a major victory as the House and Senate passed a resolution overturning an accounting policy related to cryptocurrencies established by the SEC. However, President Joe Biden has indicated his intention to veto this measure. The repeal of Staff Accounting Bulletin 121 (SAB 121) has garnered notable support, even from several Democrats who have typically been cautious about endorsing crypto-friendly proposals.
The Senate presents a more complex landscape, with its focus on various legislations governing stablecoin issuers as part of a wider financial package. This diverges from the House’s approach, where FIT21 received approval from the Financial Services Committee with the support of some Democrats, despite opposition from veteran Maxine Waters.
As the vote draws near, the tension between the necessity for clear regulations and traditional political hesitancy becomes evident. The cryptocurrency industry anxiously awaits the outcome of the vote, as it will shape the regulatory future of digital assets in the United States.
Disclaimer: The views and opinions expressed in this article, or by any individuals mentioned, are solely for informational purposes and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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