U.S. House Passes FIT21 Act with Bipartisan Vote of 279-136 to Regulate Digital Assets

May 22, 2024, 09:50 PM

The U.S. House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), also known as H.R. 4763, with a bipartisan vote of 279-136. The bill aims to establish a comprehensive regulatory framework for digital assets, delineating the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The CFTC will regulate decentralized blockchains like Bitcoin, while the SEC will oversee centralized blockchains. Despite opposition from President Joe Biden and SEC Chair Gary Gensler, who cited insufficient consumer protections and potential regulatory gaps, the bill garnered significant support from both parties, including 71 Democrats and notable figures like Nancy Pelosi. The legislation, regarded as the first standalone crypto market structure bill, now advances to the Senate, where further debates and potential amendments are expected. The bill emphasizes consumer protection and aims to foster innovation in the digital asset space.