House Committee to Review FIT21 Act, Setting Stage for Floor Vote
The House Committee on Rules has opted to examine the Financial Innovation and Technology for the 21st Century (FIT21) Act, paving the way for a floor vote later this month. This legislation aims to provide enhanced regulatory clarity in the U.S. crypto ecosystem, striking a balance between robust consumer protections and the needs of a growing digital economy.
The FIT21 Act, introduced last July, represents a crucial initial step towards achieving regulatory clarity in the U.S. for digital assets. The House Committee on Financial Services, which approved the bill last year, emphasized that FIT21 “provides the robust, time-tested consumer protections and regulatory certainty necessary to allow the digital asset ecosystem to flourish in the United States.”
Chair of the House Financial Services Committee, Representative Patrick McHenry (R-NC), expressed the need for regulatory certainty in the digital asset ecosystem, stating that regulatory uncertainty has hindered innovation and left consumers unprotected. He highlighted the comprehensive nature of the legislation, which involved an unprecedented joint effort by the House Financial Services and Agriculture Committees, numerous hearings, and feedback from members and stakeholders.
McHenry stated, “With the floor vote announced today, Congress will take a historic step to provide a clear regulatory framework for digital asset markets. This legislation will cement American leadership of the global financial system for decades to come and bolster our role as an international hub for innovation.”
Congressman French Hill (R-AR) echoed these sentiments, emphasizing the importance of strong consumer protections and a functional regulatory framework for the digital asset ecosystem. Hill noted the significance of the legislation, stating, “I am proud that this landmark legislation is coming to the House Floor.”
The proposed legislation outlines clear regulatory boundaries between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding digital assets. It grants new jurisdictional powers to the CFTC over digital commodities and specifies the SEC’s oversight over assets offered as part of investment contracts.
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