The US House of Representatives has just approved the cryptocurrency market structure bill, entitled the Financial and Technological Innovation for the 21st Century Act (FIT21). The bill passed by a vote of 279 to 136. Supporters included seventy-one Democrats, including former Speaker Nancy Pelosi.
The bill gives the Commodity Futures Trading Commission (CFTC) increased powers and funding to oversee the cash markets for cryptocurrencies and "digital commodities", including bitcoin. It also includes provisions relating to stablecoins and measures to combat money laundering.
The future of FIT21 in the Senate remains uncertain, meeting opposition from cryptocurrency critics such as Elizabeth Warren. Although the Senate passed a resolution last week to overturn a rule that restricted cryptocurrency banks and businesses, FIT21's journey through the Senate could stretch out over several months. If FIT21 makes it to the Senate, it could be subject to rounds of revisions, hearings and markups before a final vote. Any differences between the House and Senate versions will have to be resolved, followed by final approval by each chamber.
President Biden will then have ten days to sign or veto the bill. In the event of a veto, Congress can override the bill with a two-thirds majority vote in each chamber.
Coinbase CEO Brian Armstrong called the bill's passage a "total victory" and a step towards clear rules for cryptocurrencies. Jake Chervinsky of Variant Fund highlighted the significant support from Democrats as a sign of mistrust in the SEC's current approach.
These developments mark a crucial step in the regulation of cryptocurrencies in the US, influencing not only local markets, but also international standards in the cryptocurrency industry.
Image: PayBito
