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📌 Crypto industry backs bill ahead of final vote

The crypto industry is asking the House of Representatives to pass the important FIT21 bill next week, aimed at clarifying U.S. regulations and maintaining global competitiveness. Cryptocurrency

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The crypto industry is asking the House of Representatives to pass the important FIT21 bill next week, aimed at clarifying U.S. regulations and maintaining global competitiveness.

The FIT21 bill, which aims to create a comprehensive US regulatory framework for digital assets, is expected to come up for a vote next week. The cryptocurrency sector has urged House leaders to support this important bill. Many industry representatives have signed letters to key members of the U.S. House of Representatives advocating for passage of the 21st Century Financial Innovation and Technology Act.

The letter emphasizes that passage of the bill will help the United States remain globally competitive as the House of Representatives stands ready for a vote. The vote is a historic moment for the U.S. cryptocurrency industry and could lead to long-awaited regulation. Major associations and companies including Coinbase, Kraken and Andreessen Horowitz have been criticized by House Speaker Mike Johnson (Louisiana Republican) and Minority Leader Hakeem Jeffries (New Jersey Democrat). A vote on the Financial Innovation and Technology for the 21st Century Act (FIT21) is scheduled to take place next week, with action scheduled for mid-week.

The bill seeks to designate the CFTC as the primary regulator of digital assets and define its responsibilities, as opposed to the SEC, by providing consumer protections, including rules for the safekeeping and treatment of customer assets in bankruptcy, as well as imposing safeguards against risky behavior.

Passage of this bill has the potential to advance blockchain technology and digital assets, expand access to financial services, and protect national security,” the letter said. “It is critical for the United States to maintain its leadership in financial innovation.”

The crypto industry in Washington is optimistic: both the House and Senate recently passed a resolution to repeal the SEC’s cryptocurrency accounting policy, but President Joe Biden has vowed to veto it. The decision to repeal SEC Accounting Bulletin 121 (SAB121) was a significant victory for the industry and garnered the support of many Democratic lawmakers, who have traditionally been more reluctant to support cryptocurrencies than Republicans.

During the recent political fight, more than 5 Democrats in the Senate sided with the industry, led by Majority Leader Chuck Schumer (a New York State Democrat). About 10 Democrats in the House of Representatives supported the effort. But the omnibus bill currently up for a vote in the House has a much larger scope. Key Democrats in the Senate have not yet shown a willingness to support the House effort. So far, the Senate has only shown interest in another cryptocurrency bill that would regulate stablecoin issuers as part of a broader financial legislative package.

Patrick McGenry (North Carolina), a member of the House Financial Services Committee, where the bill was drafted, noted that Democratic support for FIT21 in the House could be a deciding factor in the Senate. When the bill passed his committee, several Democrats supported it, but senior committee member Maxine Waters (D-Columbia, Calif.).

Various amendments were made during the FIT21 debate, which the House Rules Committee requested in order to meet the 16-day deadline.

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