The Financial Innovation and Technology for the 21st Century (FIT21) Act, AKA ‘The Crypto Bill’, Passes US House

The Financial Innovation and Technology for the 21 Century (FIT21) Act, a bill that would treat crypto assets as commodities provided their blockchain is decentralized enough, has passed the US House of Representatives.

According to a new press release by the Financial Services Committee, the House has passed the new crypto bill, which would bolster consumer protections and give the Commodity Futures Trading Commission (CFTC) authority over digital assets.

As stated by Republican Representative Patrick McHenry of North Carolina, the Chair of the Financial Services Committee,

“Today, the House took a historic step by passing FIT21 with broad, bipartisan support. FIT21 provides the regulatory clarity and robust consumer protections necessary for the digital asset ecosystem to thrive in the United States.

The bill also ensures America leads the financial system of the future and remains a hub for technological innovation.”

Furthermore, Minnesota Representative Tom Emmer’s Securities Clarity Act – which was initially introduced in 2020 with the aim of properly classifying digital assets – was passed as well as part of FIT21. According to Emmer, this marks a step toward clear crypto guidelines.

“With the passage of the Securities Clarity Act and FIT21, American digital asset innovation can flourish. This globally competitive framework will give entrepreneurs the clarity and assurance they need to build here, in the United States, while ensuring the next iteration of the web emulates our values.”

Earlier this week, the White House hinted that it would not veto if passed despite facing opposition from Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC).

According to Gensler, the bill would create regulatory gaps and conflicts with current securities laws. Though the White House said it does not support the bill, it noted that it’s willing to work with Congress to improve it.

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Featured Image: Shutterstock/kikk/Natalia Siiatovskaia