A group of cryptocurrency companies and advocacy organizations have called on United States lawmakers to support legislation that would clarify the regulatory roles of financial authorities in relation to digital assets. In a letter sent to the leadership of the U.S. House of Representatives on May 16, approximately 60 firms represented by the Crypto Council for Innovation (CCI) expressed their support for H.R.4763, also known as the Financial Innovation and Technology for the 21st Century (FIT21) Act. This bill, which was approved by the House Financial Services Committee in July 2023, aims to provide clarity on how digital assets are regulated by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The CCI emphasized the importance of regulatory clarity, stating that while the FIT21 Act would introduce new compliance challenges for digital assets companies, it is necessary for the safety of consumers and to address the outdated U.S. securities laws that were not designed to accommodate the technological advancements of today’s digital transactions.
Prominent companies such as Coinbase, Circle, Block, Kraken, Gemini, and Stand With Crypto were among the signatories of the letter. The advocacy group urged U.S. citizens to contact their representatives and show their support for the bill.
Patrick McHenry, the Chair of the House Financial Services Committee, stated that the FIT21 bill could be ready for a vote on the House floor later this month, following consideration in the rules committee. If passed, this would give lawmakers approximately five days of session before June to discuss the bill. Many lawmakers, including Representative French Hill, have already indicated their intention to vote in favor of the legislation.
Additionally, in the past ten days, both the House and Senate passed a resolution to overturn a rule by the SEC regarding the handling of digital assets by banks. Although the legislation received bipartisan support in Congress, President Joe Biden announced his plans to veto it.
Senator Cynthia Lummis, a vocal advocate for digital assets, highlighted that the resolution overturning the SEC rule was the first standalone crypto legislation passed by Congress in this session. It remains uncertain whether lawmakers will also pass the FIT21 Act. The White House has not provided any indication as to whether President Biden would sign the bill into law immediately if it is passed by both the House and Senate.
The potential passage of these two crypto bills coincides with the United States entering deeper into an election year. President Biden and former President Donald Trump, who are expected to be the Democratic and Republican Party candidates for the 2024 election, have agreed to two debates on June 27 and September 10, during which cryptocurrency could be a topic of discussion.