The United States' crypto space has undergone a significant regulatory development with the approval of a bill by the House Committee. The Financial Innovation and Technology Act for the 21st Century Act, also known as FIT21, was approved by the House Financial Services Committee on July 26th. This bill is expected to bring clarity to the industry.
#PASSED: In a historic first, the House Financial Services Committee just advanced the BIPARTISAN FIT for the 21st Century Act to protect consumers and provide clear rules of the road for the digital asset ecosystem. Up next: @HouseAgGOP considers the legislation tomorrow. pic.twitter.com/kOyLmolPuz — Financial Services GOP (@FinancialCmte) July 26, 2023
The FIT21 bill has been approved by the House Committee with a 35-15 voting result, following a lengthy deliberation. It is worth noting that the bill has been gaining attention, with Coinbase CEO Brian Armstrong taking to Twitter to urge crypto users in the United States to actively push for its approval. While Armstrong believes that the bill will likely be modified as it passes through the complete legislative process, its approval by the House Committee is crucial to safeguard the crypto space, American innovation, and national security.
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US House approves crypto bill for regulation. The FIT21 Act – A Landmark Legislation For U.S. Crypto Space?
The Financial Innovation and Technology for the 21st Act was recently introduced to the House on July 20. US House approves crypto bill for regulation.
Representative French Hill, Chairman of the House Subcommittee on Digital Assets, Financial Technology, and Inclusion, referred to the Act as a "landmark legislation" that is essential in creating an efficient regulatory framework to protect the interests of crypto users. He also stated that the bill could have prevented the FTX crisis and provided much-needed clarity in the crypto industry.
This legislation would not only have prevented FTX from stealing billions of customer funds, but also establishes robust consumer protections and clear rules of the road for market participants.
In addition, the FIT21 Act will enhance cooperation between the two financial regulators trying to assume control of the U.S. crypto market. U.S. Representative Dusty Johnson, another sponsor of the bill, emphasized this motion saying:
The crypto industry wants clarity and our collaborative bill gives both the CFTC and SEC a seat at the table. Our bill establishes clear principles to ensure financial security and certainty as digital asset developers continue to innovate.
U.S. Congress Finally Stepping Up Crypto Regulations
The need for a regulatory framework in the US cryptocurrency market has been a topic of discussion for some time, especially after the SEC's crackdown on several cryptocurrency exchanges and businesses in 2023. Patrick McHenry has pointed out that the United States is lagging behind other countries in terms of digital asset regulation. However, the introduction of bills such as the FTI21 Act, Blockchain Regulatory Act, Digital Asset Market Structure Proposal, and the "Lummis-Gillibrand" Bill suggests that the US government may be increasing its regulatory efforts in the cryptocurrency industry.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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