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House Financial Services Committee to Consider FIT21 Act for Crypto Regulation
The House Financial Services Committee announced on Friday, May 10, its intention to consider the Financial Innovation and Technology for the 21st Century (FIT21) Act. This crucial step signals a forthcoming floor vote later this month, underscoring Congress’s commitment to providing regulatory clarity for cryptocurrencies and other digital assets.
In its forecast on crypto regulation, crypto.news highlighted the FIT21 Act as a key piece of legislation for 2024. Introduced by Chairman Glenn Thompson, along with Representatives French Hill, Dusty Johnson, Whip Tom Emmer, and Warren Davidson, the act aims to establish clear federal requirements for crypto markets, ensuring necessary consumer protections and fostering the growth of the U.S. crypto industry.
House Financial Services Committee Chairman Patrick McHenry emphasized the importance of the FIT21 Act in addressing regulatory uncertainties. “For far too long, the U.S. digital asset ecosystem has been plagued by regulatory uncertainty that has stifled innovation and left consumers unprotected,” McHenry stated. “This comprehensive market structure legislation is the culmination of years of bipartisan efforts to finally provide clarity.”
The FIT21 Act proposes several key measures to enhance transparency, accountability, and consumer protections within the crypto asset ecosystem. It grants new jurisdiction to the Commodity Futures Trading Commission (CFTC) over crypto commodities and clarifies the Securities and Exchange Commission’s (SEC) authority over digital assets offered as part of investment contracts.
Congressman French Hill highlighted the significance of the legislation, especially in light of recent market events. “As the collapse of FTX demonstrated, we need strong consumer protections and a functional regulatory framework to ensure the rapidly growing digital asset ecosystem is safe for investors and consumers while securing America as a leader for blockchain innovation,” Hill stated.
Reacting to the announcement, Representative Ro Khanna from California’s 17th congressional district emphasized that regulatory uncertainty has driven innovation and job opportunities away from the United States. Khanna pledged his support for the bill, provided that no detrimental amendments are added. He also stressed the importance of defining what constitutes a security versus a commodity and implementing safeguards to protect consumers from scams.
Khanna expressed eagerness to support amendments that enhance consumer protections as the bill progresses through the legislative process.
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