FIT21 crypto law Passes A law that would clarify the responsibilities of the US securities and commodities regulator in overseeing cryptocurrency is currently making its way to President Joe Biden’s desk and the Senate, but its ultimate fate is unclear. On May 22, a measure proposing financial innovation and technology for the 21st century (FIT21) was approved by a vote of 71 in favour and 136 against. Republicans introduced the bill.
Since there is no companion bill and it is up against Senator Elizabeth Warren, one of the country’s most vocal crypto critics, its fate in the United States Senate is uncertain. However, on May 16, the Senate approved a resolution to repeal a rule that would have limited the ability of banks and crypto companies to do business. There is no deadline for when the 100-member Senate must act on FIT21 crypto law passes, so it may be months before it is even considered.
They still have a good chance of sending the bill to a committee for review, which may involve markups and hearings, even if they win. Following that, it must have the backing of fifty-one senators to be passed. As members of the House and Senate get together to resolve any discrepancies in their respective versions of the bill, FIT21 could undergo revisions. Following this, the measure will seek final approval from Congress once again.
Obama will then have ten days to approve or reject FIT21. On May 22, however, his administration opposed the bill’s passage without specifying whether he would veto it. If FIT21 were to pass the House and Senate with a two-thirds majority vote, it might still pass over Biden’s veto.
Industry cheers passage
On May 22, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler openly voiced his opposition to FIT21, stating that it establishes “new regulatory gaps” and endangers the stability of capital markets. According to many, one early victory for cryptocurrency is its passage through the House of Representatives. Coinbase CEO Brian Armstrong hailed the measure’s passage as “a total victory” and a triumph for “clear crypto rules.” He also mentioned that 71 Democrats were on board with the plan.
“That is a huge number of elected Democrats voting ‘no confidence’ in the current. SEC,” commented Jake Chervinsky, chief legal officer at the Variant Fund. On the other hand, crypto-focused attorney Gabriel Shapiro has put a damper on the festivities, Saying on X that. FIT21 crypto law passes would still grant the SEC “huge power. He said the two regulatory bodies, the SEC and the CFTC, would work together under this system. A spot commodities market is entrusted to the CFTC’s regulatory authority. According to the author, this has never been there before.
Crypto’s sector views the Commodity Futures Trading Commission (CFTC). As a more lenient regulator than its securities-regulating counterpart, FIT21 essentially gives them control of crypto. On the other hand, FIT21 would open the door for the marketing of cryptocurrencies categorized as securities. Cryptocurrencies that lack adequate decentralization would be subject to regulation by the SEC as commodities.
