① On Wednesday, the US House of Representatives passed the “21st Century Financial Innovation and Technology Act”, which is seen as one of the major victories for the crypto industry; ② US President Joe Biden previously clearly expressed opposition to the bill, but did not reveal that he would veto the bill; ③ the US Securities and Exchange Commission criticized that the bill legalized companies that illegally trade cryptocurrencies.
Financial Services Association, May 23 (Editor: Malan) Despite opposition from US President Joe Biden, many Democratic members of the US House of Representatives chose to join with Republican lawmakers to pass a bill that has a profound impact on the digital asset industry.
On Wednesday, the US House of Representatives passed the 21st Century Financial Innovation and Technology Act (FIT21) by 279 votes to 136. 71 Democrats and 208 Republicans voted for the bill, while 3 Republicans and 133 Democrats voted against it.
As one of the Democratic lawmakers who disregarded opposition from the White House, Josh Gottheimer stated that the US crypto industry needs rules. He believes that Congress needs a reasonable, well-considered, and bipartisan legislation, and that the 21st Century Financial Innovation and Technology Act will be an important milestone.
FIT21 is mainly promoted by Republicans and aims to establish a system to regulate the US cryptocurrency market, develop consumer protection measures, give the US Commodity Futures Trading Commission new jurisdiction over digital goods, and clarify the US Securities and Exchange Commission's jurisdiction over some digital assets in investment contracts.
The bill will go to the US Senate for a vote, and if passed, it will go to US President Joe Biden's desk for approval. Although Biden clearly expressed his opposition in a policy statement, he did not say he would veto the bill. However, even if the bill is implemented, there is still a long way to go until formal regulation, and the corresponding committee needs to issue more details.
Life is full of misfortunes
As a long-time opponent of the cryptocurrency industry, the US Securities and Exchange Commission (SEC) is very unhappy with the passage of the new law. SEC Chairman Gary Gensler issued a public statement criticizing the new law, saying it was a no-brainer and would jeopardize existing securities regulations.
Democratic Representative Maxine Waters, who expressed opposition, also pointed out that the bill allows cryptocurrency companies that have always evaded the provisions of the securities law to clearly evade responsibility. These companies have already earned billions of dollars by illegally issuing or assisting in the trading of crypto securities. The GOP's proposal is to legalize these activities to encourage these crypto companies.
Interestingly, the advent of FIT21 is inextricably linked to one person. Former FTX CEO Sam Bankman-Fried, who is now in jail, was one of the leaders in lobbying Congress for a cryptocurrency bill. He donated money to any member of parliament willing to participate to push for cryptocurrency legislation.
However, the sudden collapse of FTX the previous year brought the cryptocurrency bill process to a freezing point. Last summer, FIT21 was eliminated by the House Financial Services Committee and the Agriculture Committee in partnership. But as more people realized the importance of crypto industry regulations to solidify America's position in the global crypto industry, the bill's fate was reversed.
Republican Congressman Patrick McHenry, who has always supported crypto industry legislation, said that his term in Congress is coming to an end, but crypto industry legislation will not end and is irresistible, just as the crypto industry will continue to exist, even if the industry is judged to die out many times.
Editor/Somer