McHenry Pushes Senate to Pass FIT21 Crypto Bill Before Election

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As a seasoned crypto investor with a keen interest in the regulatory landscape, I strongly believe that the passing of the Financial Innovation and Technology for the 21st Century Act (FIT21) is a crucial step forward for the cryptocurrency industry in the United States. The bipartisan support this bill has received in the House of Representatives is a testament to its importance and the urgent need for regulation in this space.

Patrick McHenry, a US Republican congressman and House Financial Services Chairman, stressed the importance of the Senate passing the Financial Innovation and Technology for the 21st Century Act (FIT21) prior to the upcoming presidential election on November 5, 2024. In an interview with Bloomberg’s Balance of Power, McHenry expressed his concerns, advocating for prompt legislative action regarding crypto regulation.

As a crypto investor, I’m excited to share that the FIT21 bill, which classifies most cryptocurrencies as commodities under the Commodity Futures Trading Commission (CFTC) jurisdiction, passed the House on May 22. This bipartisan legislation received strong support, with a total of 71 Democrats and 208 Republicans casting their votes in favor.

As an analyst, I would emphasize the urgency of the situation by paraphrasing McHenry’s statement as follows: “It is crucial that the Senate pays heed to this matter and remains dedicated to passing policies. The upcoming election should not distract them from completing their work.”

CFTC Preferred over SEC

In the crypto world, there’s a strong preference for the Commodity Futures Trading Commission (CFTC) as the regulatory body over the Securities and Exchange Commission (SEC). The SEC primarily oversees cryptocurrencies that don’t meet the criteria of decentralization. The recent approval of the Financial Innovation Technologies Act 2.0 (FIT21) is a substantial step towards establishing a regulated environment for digital assets in the United States.

As an analyst, I’d put it this way: The Senate’s unexpected response to the strong support the FIT21 bill received in the House was highlighted by McHenry. He expressed, “Given the current political climate, securing a two-thirds vote for passing the FIT21 bill in the House is a significant achievement.” Nevertheless, this legislation encounters resistance from the Securities and Exchange Commission and President Biden.

The Senate, headed by Democratic Majority Leader Chuck Schumer, comprises 48 Democrats, 3 independents aligned with them, and 50 Republicans. Discussions regarding FIT21 in the Senate are uncapped in terms of time, and a passage requiring only a majority of 51 senators is necessary.

Bipartisan Stablecoin Bill Efforts

I’ve been collaborating with Democratic representative Maxine Waters for close to two years in an effort to progress a stablecoin bill. However, I acknowledged the challenge of getting it passed in the Senate without attaching it to a larger bill. Regarding linking it to the SAFER Banking Act, which advocates for cannabis companies’ access to financial services, I expressed my disagreement, explaining:

“I don’t support the cannabis banking bill that has been proposed. I cast my vote against it during the last two congressional sessions.”

As the November 5 presidential election draws near, McHenry and other Republican legislators intend to urge Schumer and the Senate to make the FIT21 bill a priority. McHenry emphasized the importance of passing legislation to regulate cryptocurrencies within the US.

As a researcher studying the crypto industry, I can tell you that the ongoing legislative push has the potential to shape US crypto regulations significantly. This could set an important precedent for future regulatory frameworks in this space. The FIT21 bill, in particular, is designed to bring clarity to the crypto sector by proposing clear-cut guidelines. By doing so, it intends to foster growth and innovation within the industry while ensuring investor protection and market stability.

 

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2024-05-31 16:14