The recent passage in the House of Representatives of Bill FIT21 or HR 4763, also known as the Financial Technology and Innovation Act for the 21st Century, marks an important milestone in the United States cryptocurrency ecosystem. As the House of Representatives noted in the statement it published to announce the results of the vote, this is a proposal that seeks to ensure that the United States continues to lead the financial system of the future and remains a center of technological innovation. The idea is also to provide consumer protection and give them the regulatory certainty they need, adds the official letter, which highlights how the progress of this proposal in the US Congress is has become a historical fact. Let's look at some of those reasons below.
It is the proposal to regulate bitcoin that has made the most progress in the US.
According to the legislators, the FIT21 is the regulatory proposal for the bitcoin sector that has advanced the most in the United States Congress, as many other projects have been presented, but they have fallen by the wayside before reaching the House of Representatives. In this way, FIT21 stands as the proposal that comes closest to being enacted into law. It is therefore considered that the approval of the bill in the Chamber represents a first step to put an end to the regulatory uncertainty that has dominated the cryptocurrency industry in the United States in recent years. This is because it establishes clear standards that outline the path for the country to lead the global technological revolution. This was indicated by the president of the Agriculture Committee, Glenn Thompson, one of the proponents of FIT21. An argument supported by Democrats who voted in favor of the measure, among whom are former House Speaker Nancy Pelosi and House Minority Leader Katherine Clark. Pelosi described the event as an «important first step,» stating, at the same time, his desire to work with the Senate and the Biden administration to improve the bill. «Cryptocurrencies are already integrated into our economy and their importance will only grow in the coming years. Millions of Americans own cryptocurrencies. «Many jobs in my community depend on this industry,» he said. Faryar Shirzad, chief policy officer at the Coinbase exchange, also sees the proposal as “a big step forward,” especially since he made it, for the first time, the White House recognized the need for legislation comprehensive for the sector. This highlights the fact that Biden will express his intention not to veto the project even though he does not support it, offering to work with Congress to improve it. This statement represents an important shift in government policy, since after the executive order signed by Biden in 2022, the US administration became increasingly hostile towards cryptocurrencies. However, with the passage of FIT21 in the House, the country could now move towards a change in the way it views cryptocurrencies.
Defines concepts and determines the functioning of the sector
Among the approaches included in the bill, the definition of concepts that, until now, have not been clear in the US industry stands out, allowing the identification of the elements that make a crypto asset a security or a commodity. (commodity). This is intended to resolve a long-standing dispute over the classification of cryptocurrencies and that has caused the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to fall into contradictions. Additionally, the bill proposes a process to allow the trading of cryptocurrencies in the secondary market, after having initially been offered as part of an investment contract. Provisions on stablecoins and anti-money laundering rules are also included as a protection measure for investors. It also provides for the creation of a personalized disclosure and registration regime for digital asset companies. Is about a kind of self-certification of assets as digital commodities, which has been highly questioned by opponents of the project. This is because FIT21 provides criteria to determine this status according to the level of decentralization of a project. FIT21 also addresses standards for the treatment of trading platforms, decentralized finance and project fundraising.
Delimits the powers of the SEC
The regulations designate the CFTC as the primary regulatory body for cryptocurrencies, with more powers than the SEC. This is a choice with which It is intended to end the debate that has been brewing among American cryptocurrency regulators, about what field of action falls within each one. Consequently, the powers of the CFTC and the SEC are delimited, which is one of the main requests within the cryptocurrency industry. The objective is to limit the large number of demands, accusations and accusations against bitcoin companies carried out by the SEC for what they consider to be securities. An action that has led to a large number of complaints due to the agency's insistence that the ecosystem comply with legislation in force for years. This is one of the reasons why SEC Chairman Gary Gensler came out strongly against the bill, claiming that the new legislation «would create new regulatory loopholes and undermine decades of precedent regarding the oversight of securities contracts.» investment, putting investors at risk. He also argued that the law would give scammers a way to avoid securities laws «by cynically claiming that their products are crypto assets.» The official believe your vision will prevaildespite the House vote, as he is confident that his views on cryptocurrencies “will gain traction in the courts.”
Reaffirms the political role of cryptocurrencies
The House vote reaffirms the growing role that cryptocurrencies play in today's politics. This, taking into account the level of adoption that exists in the US, where more than 5% of the population has cryptocurrencies. A role that becomes relevant in these months prior to the presidential elections. It is known then that the proposals about bitcoin that are made in the campaign can become a hot topic in the presidential race. Former President Donald Trump demonstrated this by accepting BTC in his campaign and showing himself in favor of the sector after having been a staunch opponent; an attitude that Biden is beginning to show softening its stance on cryptocurrencies. Democrats' growing support for FIT21 is another indicator that politicians already know that opposing the cryptocurrency industry might not be very favorable, as the House statement says. This is admitting that the regulation of this ecosystem is becoming in an increasingly political and partisan issue. At this point, Congressman Patrick McHenry, chairman of the House Financial Services Committee, assured that the overwhelming support that FIT21 achieved in its vote should serve as «a wake-up call» for the Senate and the current Biden administration to act. realize the importance of digital assets and emerging technologies.
Reflects lawmakers' growing interest in bitcoin
The Financial Technology and Innovation Bill for the 21st Century was introduced in Congress last year. It was introduced by the chairman of the House Agriculture Committee, Glenn Thompson; Financial Services Committee Chairman Patrick McHenry; Rep. French Hill, Rep. Dusty Johnson, Rep. Tom Emmer, and Rep. Warren Davidson. It was one of several bills presented in the last six years and its approval comes after House Republicans will create, in 2023, a subcommittee on digital assets dedicated only to proposing rules for the sector. Analysts note that the overwhelming support for the FIT21 project not only reflects increased interest among policymakers, but also indicates a desire to ensure that the United States remains at the forefront of innovation and technological development. A position that fear of losing if the restrictive regulation imposed by Biden continues. The interest in the development of the ecosystem is also reflected in the vote in favor that a resolution to revoke the SEC rule received a few days ago. that prevents local banks from safeguarding cryptocurrencies. The bipartisan support for two projects that favor the sector looks like a challenge to Biden's position and a sign of lavailable to Congress to change the direction of bitcoin regulation in the US.