US House Passes FIT21 Crypto Bill with Clear Majority, White House Opposes

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As a researcher with a background in digital finance and policy, I am thrilled to see the historic passage of the FIT21 crypto bill in the US House of Representatives. This is a significant regulatory development for the crypto, blockchain, and Web3 industry, and it will be particularly beneficial for gaming companies that have raised substantial investments.

On Wednesday, May 22, the US House of Representatives reached a significant achievement by approving the long-anticipated FIT21 cryptocurrency legislation. This bill garnered strong backing from both Democratic and Republican legislators.

Seventy-one Democratic representatives joined forces with the Republicans, resulting in a final tally of 279 in favor and 136 opposed, during the House vote on the Financial and Innovation Technology Act. Notably, this legislation represents a significant regulatory advancement for crypto, blockchain, and the burgeoning Web3 sector. Furthermore, it is expected to provide valuable support to the Web3 gaming companies that have secured substantial investments from prominent venture capital firms in recent times.

As an analyst, I’d interpret the FIT21 crypto bill as a proposal to restructure US digital asset regulations with the goal of fostering innovation while ensuring consumer protection. Notably, this legislation grants the Commodity Futures Trading Commission (CFTC) expanded jurisdiction over digital assets classified as commodities. Following this announcement, Ripple‘s Chief Legal Officer, Paul Grewal, voiced his perspective:

“Seventy-one Democratic representatives in the House have teamed up with Republicans. Pause for thought – these 71 Democrats have defied partisan lines, joining forces against the blame-shifting, fear-instilling, and uninformed legislators who declined to pass legislation. Bravo, Congress – the passage of FIT21 represents genuine advancement.”

The Crypto Council for Innovation highlighted that the latest vote signifies the conclusion of years-long teamwork among regulators, their teams, and crypto sector players. This collaboration aims to bolster consumer safeguards and preserve the US’s position at the forefront of digital advancements.

According to the legislation, crypto businesses and innovators, such as game developers, can now follow a clear-cut guideline to identify if their digital assets fall under the classification of securities.

Additionally, clearer rules will reduce the confusion that led to costly lawsuits between agile tech startups and regulatory authorities in the past.

White House Opposes the FIT21 Crypto Bill

As a researcher, I’ve come across information indicating that the White House has announced its opposition to the Crypto Bill based on reports from Politico. According to this report, the Biden administration has articulated concerns that the bill, as currently drafted, does not offer sufficient protections for consumers and investors engaging in digital transactions.

As a crypto investor, I’ve noticed that the White House hasn’t explicitly stated their intention to veto the Financial Innovation and Technology for the 21st Century Act. This legislation, which is favorable to cryptocurrency backers, hasn’t been directly threatened with a veto yet.

“During the recent vote, Democratic Representative Gerry Connolly from Virginia expressed disappointment over the Financial Innovation and Technology for the 21st Century Act. He believed that this legislation failed to address a common objective – bringing stability to an industry marked by excessive speculation and the collapse of prominent players. The proposed measures such as self-certification, regulatory exemptions from established securities laws, and weakened consumer protection safeguards did not live up to the esteemed reputation of US financial leadership on a global scale.”

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2024-05-23 12:50