House to Vote Today on Major Crypto Bill FIT21 Amid Gensler's Opposition

May 22, 2024, 09:12 AM

The United States House of Representatives is set to vote on the Financial Innovation and Technology for the 21st Century Act (FIT21), a significant piece of cryptocurrency legislation. The bill, which aims to provide regulatory clarity for digital assets, is supported by major players in the crypto industry, including Coinbase and various web3 entrepreneurs. FIT21 seeks to define the regulatory roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), potentially categorizing certain digital assets as commodities or securities. It is a joint effort by the House Agriculture Committee and the House Financial Services Committee. However, the bill has faced strong opposition from SEC Chair Gary Gensler, who argues that it could create regulatory gaps and endanger investor protections. Gensler warns that the act might allow crypto firms to self-certify, bypassing SEC oversight. Proponents of the bill believe it is crucial for maintaining the United States' position as a global hub for technology and finance innovation and protecting the millions of Americans who hold crypto.