FIT21 crypto law Passes. A bill that is now on its way to President Joe Biden’s desk and the Senate and might or might not become a law instructs the SEC and the Commodities Regulator on how to regulate cryptocurrencies. On May 22, the project that was up for debate, which stood for financial innovation and technology for the 21st century (FIT21), passed a vote of 71 to 136. Republican lawmakers sponsored the bill.
There is no companion bill, so along the way, it is up against Senator Elizabeth Warren, the strongest crypto opponent in the country; therefore, its position is inherited in the legislature’s upper house. In the meantime, on May 16, the Senate passed a rule that would curb banks and crypto companies only to deal business with each other. Senate resolution dissolution is unlimited, so the 100 members need not move over the bill yet, which means they can ignore it in deadlock till late.
However, they are still in a favorable position to send the bill to a committee for assessment, which may include markup and hearings, even if they prevail. Besides, it should get a fifty-one senator majority vote to become law. FIT21 may change as the House and Senate meet to determine differences in respective measure versions. A bill will thereafter be sent into Congress for consideration.
Then, Obama will have ten days to either endorse or reject FIT21. On the other hand, his administration did not support the motions of the bill on May 22, and he did not clearly say if he would veto the bill. Yet if FIT21 wins two-thirds of the House and Senate, it could still be over Biden’s veto.
Industry cheers passage
On May 22, US Securities and Exchange Commission (SEC) Chair Gary Gensler gave a bold, powerful statement in opposition to FIT21, asserting that the regulation creates new loopholes and thus threatens the stability of the capital markets. Nevertheless, in the opinions of many, the early cryptocurrency win lies in the fact that the House of Representatives greenlit it. CEO of Coinbase, Brian Armstrong, called it a huge win and a triumph in clear FIT21 crypto law passes rules. He further said that out of the 71 Democrats, most voted in favor of it.
That is indeed an impressive number of elected Democrats who are saying ‘no confidence’ in the SEC. The other thing is that the loudest voice of the celebration against crypto-oriented lawyer, Gabriel Shapiro, opined that the SEC still aggregated giant power in this mode! The two regulatory agencies, the SEC and the CFT may cooperate with this regulation. Credits to the system distinctions to allow customers to trade spot commodities without the assistance of the CFTC is a big step for the CFTC, even though, according to the author, this has never happened before.
FAQs
Who sponsored the FIT21 bill, and what challenges does it face?
The bill was sponsored by Republican lawmakers but faces opposition from figures like Senator Elizabeth Warren, who is a strong crypto critic.
What are the chances of FIT21 becoming law?
For FIT21 to become law, it needs majority support in the Senate, followed by President Biden’s approval, though it could be vetoed if it doesn't secure enough votes.
How did the crypto industry react to the FIT21 bill's passage?
Industry leaders, including Coinbase CEO Brian Armstrong, celebrated the bill's passage, calling it a significant victory for clear crypto regulations, despite opposition from the SEC.
What are the concerns regarding FIT21 raised by the SEC?
SEC Chair Gary Gensler criticized the bill, arguing it creates new loopholes that could undermine the stability of capital markets and weaken regulatory oversight.
