News
The future of the FIT21 law after the House vote
The US House of Representatives will vote on a new bill: the Financial Innovation and Technology for the 21st Century Act, or FIT21 – this would establish a regulatory framework for the crypto market.
Bitcoin cryptocurrencies (BTC-USD) and Ethereum (ETH-USD) are go higher with this news while the Securities and Exchange Commission (SEC) is also approaching a deadline for possible approval of an ether ETF.
Yahoo Finance Journalist Jennifer Schoenberger provides the latest updates on crypto legislation and what it may mean for digital assets as a whole.
For more expert insights and the latest market action, click here to watch this full episode of Market Domination Overtime.
This message was written by Luke Carberry Mogan.
Video transcription
Bitcoin and Ethereum are coming together this week, as we just heard as lawmakers vote on new crypto legislation.
Yahoo Finance’s Jennifer Schonberger is here with more details.
Hi Jen, good afternoon Julie.
It’s great to see you and it’s a watershed moment for the crypto industry.
The House is expected to soon vote for the first time on legislation that would create a comprehensive regulatory framework for digital assets.
The legislation called the Financial Innovation and Technology for the 21st Century Act or Fit 21 for short is one that House Financial Services Chairman Patrick Mchenry has championed for most of the year and which the The crypto industry is strongly in favor of this legislation being established. the Commodities Futures Trading Commission as the primary regulator of digital assets.
There would be clear divisions between what the CFTC would regulate and what would fall under the jurisdiction of the SEC.
It would also establish protections for consumers and prohibit the type of mixing of customer funds that played a role in the defeat of crypto exchange FDX.
In 2022, Republican lawmakers see this legislation creating much more clarity for the crypto industry, but most Democrats led by Max Waters, ranking member of the House Financial Services Committee, oppose this law project.
Waters warns that the bill would effectively deregulate most cryptocurrencies by removing them from the SEC’s jurisdiction.
Now, in a rare rebuke, CC Chairman GG, who has launched numerous enforcement actions against the crypto industry, criticized this legislation in a statement earlier today, saying it would create new regulatory gaps and would undermine decades of precedent for oversight of investment contracts, putting investors and capital markets at immeasurable risk.
However, this vote on F 21 is expected around 5 p.m. here in Washington.
This legislation is expected to pass the House with support from Republicans and a handful of Democrats, but support in the Senate remains low at this point.
Mchenry told reporters yesterday afternoon that he hoped a good vote in the House could prompt the Senate to take another look at the legislation.