Numerous members of the United States House of Representatives are showing support for a bill that aims to clarify the responsibilities of the country’s financial regulators in relation to digital assets as it nears a floor vote on May 22.
During a speech on the House floor on May 21, Representative Wiley Nickel urged lawmakers to back the passage of the Financial Innovation and Technology for the 21st Century (FIT21) Act. The bill seeks to provide clarity on how the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission regulate cryptocurrencies and, according to Nickel, aims to prevent another incident like the FTX from occurring.
Nickel highlighted that Congress has never voted on a regulatory framework for cryptocurrencies, and that the industry is currently operating under outdated securities laws.
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Nickel specifically appealed to his fellow Democrats and Republicans to vote in favor of the FIT21 bill, emphasizing that it was crafted with bipartisan support. Reports suggest that Democratic leadership is strongly opposed to passing the crypto bill but will not actively discourage voting for it. The American Prospect stated on May 21 that former House Speaker Nancy Pelosi is expected to support FIT21, according to sources familiar with her thoughts.
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The bill would limit the SEC’s authority and put an end to the criticism of its “regulation by enforcement” approach towards crypto companies. Thus far, the commission has filed lawsuits against multiple crypto firms, including Ripple, Kraken, Coinbase, Binance, and individuals associated with them.
Nickel further stated:
The House Committee on Rules is scheduled to discuss the FIT21 bill, also known as H.R. 4763, at 4:00 pm ET on May 21, with a full floor vote anticipated the following day. This vote comes after the House and Senate passed one of the first pieces of legislation specifically targeting cryptocurrencies, which aims to overturn an SEC rule that requires banks to hold customers’ digital assets on their balance sheets with capital reserves. On May 8, President Biden announced his intention to veto the resolution.
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