Republican lawmakers in the House Financial Services Committee of the United States have announced that the House of Representatives will be voting on legislation that clarifies the roles of financial regulators in relation to digital assets sometime this week. The announcement was made in a post on May 20 by House Republicans, who stated that the full chamber will vote on the Financial Innovation and Technology for the 21st Century (FIT21) Act, giving the bill a chance to become law. The purpose of this legislation is to provide clarity on how the U.S. Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) regulate digital assets.
The FIT21 bill was passed out of the House Financial Services Committee in July 2023, but has seen little progress since then. In May, Committee Chair Patrick McHenry stated that the House Committee on Rules could soon clear the bill for a vote in the full chamber.
Various industry advocates and House members have already expressed their support for the bill, which is one of the few pieces of crypto-focused legislation that could pass through Congress this session. Additionally, President Joe Biden is expected to either veto or sign into law a joint resolution passed in May that aims to overturn an SEC rule regarding how banks should handle digital assets.
Both the Blockchain Association and the Crypto Council for Innovation, which are crypto advocacy groups, have called on House leadership to support the passage of FIT21. The Blockchain Association emphasized the need for “pro-innovation and pro-consumer guardrails” in the United States. It remains uncertain whether a majority of lawmakers will vote in favor of the bill. Although Republicans currently hold a slim majority in the House, 21 Democrats joined them on May 8 to support the resolution that nullifies the SEC accounting rule.
Sheila Warren, the CEO of the Crypto Council for Innovation, stated that while FIT21 is not a perfect bill, it is a crucial and historic step towards establishing a federal regulatory framework for digital assets in the United States.
Politics may also play a role in lawmakers’ decisions to vote for or against FIT21. With the 2024 U.S. elections already underway, some lawmakers, like Senator Elizabeth Warren, have emphasized their approach to regulating and overseeing digital assets as Election Day approaches. Representative McHenry, who is also a member of the House Financial Services Committee, will be voting on the bill but has no intention of running for reelection in November.