McHenry implores Senate to approve FIT21 crypto legislation prior to election

Outgoing Republican lawmaker Patrick McHenry has urged the Senate to pass a crucial bill regulating cryptocurrencies before the November presidential election. The Financial Innovation and Technology for the 21st Century Act (FIT21) was approved by the House on May 22, with support from 71 Democrats and 208 Republicans. Speaking on Bloomberg’s Balance of Power on May 30, McHenry, who is retiring from Congress in January, emphasized the urgency for the Senate to take action. The bill would enable most cryptocurrencies to be classified as commodities and regulated by the Commodity Futures Trading Commission (CFTC). The crypto industry perceives the CFTC as a more favorable regulator compared to the Securities and Exchange Commission (SEC), although the SEC would still have jurisdiction over cryptocurrencies that lack sufficient decentralization. McHenry revealed that the Senate was taken aback by the wide margin by which FIT21 passed the House. The bill faced opposition from the SEC and President Joe Biden. McHenry emphasized the importance of implementing regulated digital assets and cryptocurrencies in the US. Senate Majority Leader Chuck Schumer leads a Democrat majority of 48 members, along with three independent senators, compared to the 49 Republicans in the chamber. The Senate has no specific deadline for considering FIT21, but it requires a majority vote of 51 senators to pass. McHenry disclosed that he has been collaborating with Democratic Representative Maxine Waters for nearly two years to pass a stablecoin bill, which would likely need to be attached to a larger piece of legislation to gain Senate approval. He rejected the idea of linking the stablecoin bill to the SAFER Banking Act, which aims to enhance financial services access for cannabis companies. McHenry expressed his opposition to the cannabis banking legislation and stated that Republicans would exert pressure to prioritize the passage of a crypto bill in the Senate. The US presidential election is scheduled for November 5.