{"id":13740,"date":"2024-05-23T12:08:31","date_gmt":"2024-05-23T09:08:31","guid":{"rendered":"https:\/\/forklog.com\/en\/us-house-of-representatives-passes-crypto-regulation-bill\/"},"modified":"2024-05-23T12:08:31","modified_gmt":"2024-05-23T09:08:31","slug":"us-house-of-representatives-passes-crypto-regulation-bill","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/us-house-of-representatives-passes-crypto-regulation-bill\/","title":{"rendered":"US House of Representatives Passes Crypto Regulation Bill"},"content":{"rendered":"

The US House of Representatives has passed<\/a> a bill on the structure of the cryptocurrency market, known as the FIT21<\/span>, aimed at regulating the industry as a whole.<\/p>\n

The bill received 279 votes in favor and 136 against. The Republican-sponsored bill was supported by 71 Democrats, including former Speaker Nancy Pelosi.<\/p>\n

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\u201cFIT21 is the first step towards creating a regulatory framework for digital assets, and it needs to be improved by working with the Senate and the administration. As we lay the groundwork for responsible innovation, we must take further steps to enhance consumer, investor, and taxpayer protections,\u201d she stated<\/a>.<\/p>\n<\/blockquote>\n

The bill proposes expanding the powers and funding of the Commodity Futures Trading Commission (CFTC) to oversee cryptocurrency spot markets and \u201cdigital commodities,\u201d including Bitcoin.<\/p>\n

FIT21 also establishes a procedure allowing digital commodities to be traded on the secondary market if they were \u201cinitially offered as part of an investment contract.\u201d The bill includes provisions on stablecoins and anti-money laundering measures.<\/p>\n

Chairman of the Financial Services Committee Patrick McHenry noted<\/a> that the Securities and Exchange Commission (SEC) and the CFTC are currently vying for control over the cryptocurrency market.<\/p>\n

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\u201cThey have created an impossible situation where the same firms face competing and conflicting enforcement actions from two different agencies. FIT21 corrects this by creating a regulatory framework that will provide clear rules and reliable boundaries,\u201d the congressman added.<\/p>\n<\/blockquote>\n

The bill now moves to the Senate for consideration, and if approved, it will be sent to the president for signing. The Biden administration had stated<\/a> before the vote that it \u201copposes\u201d FIT21, as it does not provide \u201csufficient protection for consumers and investors involved in certain digital asset transactions.\u201d<\/p>\n

However, the White House noted that it is willing to work with Congress on a \u201ccomprehensive and balanced regulatory framework for digital assets.\u201d<\/p>\n

According to The Block<\/a>, the bill also lacks sufficient support in the Senate. Analysts at TD Cowen believe FIT21 is unlikely to be passed by the current Congress.<\/p>\n

Criticism of the Bill<\/h2>\n

Maxine Waters, Vice Chair of the House Financial Services Committee, stated<\/a> during Rules Committee hearings that FIT21 is \u201cone of the worst bills she has ever seen.\u201d<\/p>\n

According to her, FIT21 will lead to \u201coverburdening the CFTC’s resources\u201d and weakening oversight of the crypto industry. The agency has 700 employees, while the SEC employs 4,500 specialists.<\/p>\n

Moreover, Waters believes the document does not grant the CFTC sufficient authority to regulate the industry.<\/p>\n

SEC Chairman Gary Gensler also opposed FIT21, releasing a statement hours before the vote.<\/p>\n

He argues that the bill ignores longstanding precedent in regulating investment contracts, places the agency in a difficult position when certifying self-proclaimed digital commodity issuers, leads to the abandonment of the Howey test, and potentially allows investors to take on excessive risk without appropriate disclosure.<\/p>\n

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\u201cThe list of failures, frauds, and bankruptcies in the crypto industry is not because we lack rules or they are unclear. It is because many players in the crypto industry do not play by them. We must make a policy choice to protect investors, not to facilitate business models of non-compliant firms,\u201d Gensler concluded.<\/p>\n<\/blockquote>\n

Support for FIT21 in the Industry<\/h2>\n

Brian Armstrong, co-founder and CEO of the largest US crypto company Coinbase, called the House vote on FIT21 \u201chistoric.\u201d<\/p>\n

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Historic vote today on the FIT21 bill in the House of Representatives, that will finally start to create some clear rules to regulate crypto (if it becomes law).<\/p>\n

Americans want to know their representatives are protecting their rights to use crypto, creating clear rules to\u2026<\/p>\n

\u2014 Brian Armstrong (@brian_armstrong) May 22, 2024<\/a><\/p><\/blockquote>\n