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The Financial Innovation and Technology for the 21st Century Act is a watershed moment for our industry
The passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) by the U.S. House of Representatives is a major milestone for the digital assets industry. As head of the Blockchain Association, the leading trade group representing this sector, I am encouraged to see such strong bipartisan support for attempting to codify clear rules aimed at enabling responsible innovation while protecting consumers.
Note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates. Kristin Smith is CEO of the Blockchain Association, the Washington, DC-based trade association representing crypto.
For too long, the regulatory landscape for digital assets in the United States has been an untenable and confusing mess. Different federal agencies have asserted conflicting jurisdictions, creating confusion and uncertainty in the marketplace. Meanwhile, the United States Securities and Exchange Commission (SEC) has taken advantage of this precarious situation to fuel a campaign of intimidation and repression that threatens the viability of crypto in the United States.
This has led to more uncertainty, costly legal battles, and the risk that the United States will fall behind other regions such as the European Union in promoting a vibrant, local crypto landscape.
The status quo simply doesn’t work for anyone – not for companies creating innovative new products and services, not for investors, and certainly not for consumers. It was time for Congress to step up, reclaim its rightful place as the driving force behind economic policymaking, and develop a modern, fit-for-purpose regulatory framework.
Although the legislation will need further refinement as it moves through the Senate, FIT21 represents a notable step in the right direction. It recognizes the fundamental promise of crypto and blockchain technology and strives to promote innovation while protecting consumers. This legislative approach to balancing these key priorities is exactly what our industry is calling for. This is also what consumers are demanding.
We applaud the efforts of House Financial Services Committee Chairman Patrick McHenry (R-N.C.) and House Agriculture Committee Chairman Glenn Thompson (R-Pa.) who led this legislation . They put in months of work, constantly engaging with industry stakeholders, including Blockchain Association member companies, to understand the key issues and try to define the right framework.
Although FIT21 is not perfect – no invoice is – we will continue to advocate for productive change. Today’s vote represents undeniable progress toward a rational policy environment that clarifies the situation for digital assets in the United States. After the challenges of 2022, it’s gratifying to see elected leaders championing this essential technology that a growing number of Americans want their government to support, or at the very least not hinder.
The House vote reaffirms crypto’s growing political momentum, following positive developments such as Congress’ recent bipartisan repeal of SAB121, the SEC’s flawed and illegal accounting guidance. A recent survey shows that large and growing factions of the American electorate want to elect politicians who understand crypto and are willing to respect and support the growth of technology in the United States.
And crypto could yet become a hot-button issue in the upcoming presidential race, with former President Trump recently embracing the technology with an explicit request for support.
As FIT21 moves forward in the Senate, the Blockchain Association and its members will remain constructively engaged, advocating for smart policies that promote responsible innovation and, above all, protect consumers. We express our sincere gratitude to the legislative leaders who led the charge to reach this watershed moment – and we look forward to maintaining crypto’s extraordinary political momentum in the months to come.