US Crypto Market Awaits FIT21 Bill’s Final Vote Next Week: What to Expect?

House lawmakers are set to vote on the Republican-led Financial Innovation and Technology for the 21st Century Act (FIT21). Major crypto exchanges like Gemini, Kraken, and Coinbase, alongside firms such as Andreessen Horowitz and Digital Currency Group, have expressed support for the bill. This vote marks a crucial moment for the crypto market, as it heads toward achieving regulatory clarity in the U.S.

60 Crypto Firms Back Market Structure Bill Vote

Sixty crypto organizations are supporting a market structure bill set for a vote next week. In a letter led by the Crypto Council for Innovation, signers urged House lawmakers to pass the bill. The letter was sent to House Speaker Mike Johnson and House Minority Leader Hakeem Jeffries on Thursday. While FIT21 will introduce “new compliance challenges” for crypto firms, the groups highlighted the need for clear rules.

They said in the letter, “Currently, digital assets firms are instructed to somehow comply with U.S. securities laws that were designed nearly 100 years ago without consideration of the technological advances of today, including the ability for transactions to move at the speed of the internet.”

The Financial Innovation and Technology for the 21st Century Act (FIT21) is scheduled for floor time next week, with expectations of a mid-week vote. The bill designates the Commodity Futures Trading Commission (CFTC) as the primary regulator of digital assets, defining its responsibilities and those of the Securities and Exchange Commission (SEC). It aims to establish consumer protections, including custody rules and asset treatment in bankruptcy, and introduces safeguards against risky behavior.

In an emailed statement, Ji Kim, CCI’s head of global policy, acknowledged that no bill is perfect but highlighted that this legislation establishes a much-needed comprehensive federal regulatory framework.

Crypto Market Patiently Waits Amid Election Hype

Kim expressed eagerness to collaborate with policymakers to advance the industry in a manner that best protects consumers and ensures that innovation remains in the U.S.

The letter was signed by crypto exchanges Gemini, Kraken, and Coinbase, as well as firms Andreessen Horowitz and Digital Currency Group, among others.

The crypto industry is currently experiencing significant support in Washington, as both the House and Senate passed a resolution overturning the SEC’s crypto accounting policy, despite President Joe Biden’s veto threat. This victory, erasing the SEC’s Staff Accounting Bulletin 121 (SAB 121), saw notable backing from Democrats, with over one in five Senate Democrats, including Majority Leader Chuck Schumer, and about one in ten House Democrats supporting it.

However, the upcoming comprehensive legislation in the House is more significant, and key Senate Democrats have yet to show comparable support. So far, the Senate has only indicated a potential willingness to include a different crypto bill, regulating stablecoin issuers, into a package deal with other financial legislation.

Also read: Is Crypto Safe with Banks? Senate Says Yes, But Biden’s Veto Looms