Patrick

United

Reserve

<p class="is-style-lead">The U.S. House of Representatives approved bill FIT21 by a majority of 279 to 136, pushing it to the Senate.</p> 
<p>This initial approval of the Financial Innovation and Technology for the 21st Century Act (<a href="https://crypto.news/us-house-to-vote-on-fit21-act-aiming-to-clarify-us-crypto-regulations/" data-type="link" data-id="https://crypto.news/us-house-to-vote-on-fit21-act-aiming-to-clarify-us-crypto-regulations/" rel="">FIT21</a>) could significantly impact the cryptocurrency market, signaling bullish sentiment across the market. This bill is a significant step toward comprehensive regulation of digital assets in the United States, potentially shaping the future of cryptocurrency trading and investment.</p> 
<h2 class="wp-block-heading" id="what-is-fit21">What is FIT21?&nbsp;</h2> 
<p>The FIT21 bill, produced by the House Agriculture Committee and the House Financial Services Committee, aims to clarify how the <a href="https://crypto.news/tag/sec/" target="_blank" data-type="link" data-id="https://crypto.news/tag/sec/" rel="">SEC</a> classifies crypto by creating a “digital commodity” term for digital assets.</p> 
<p>The bill’s main goals are to clarify the SEC’s regulatory roles, improve consumer protections, and create a stable environment for digital asset innovation. It aims to eradicate scams, regulate crypto exchanges, and protect consumers. Going into the vote, the bill had bipartisan support.</p> 
<p>Holland &amp; Knight senior policy advisor Scott Mason told crypto.news that FIT21 “is definitely an opportunity to give the crypto/blockchain industry confidence that the US is a friendly market… The industry is here to stay, and the US needs to lead, not follow EUR and other countries that are aggressively courting industry investment.”</p> 
<h2 class="wp-block-heading" id="the-ruling">The ruling</h2> 
<p>The House proceeding started slowly after Rep. Jim McGovern commented about former President Donald Trump, leading Republicans to demand that McGovern’s “words get taken down.” This <a href="https://www.everycrsreport.com/reports/R45866.html" target="_blank" rel="">mechanism</a> may be invoked during debate on the House floor, in the Committee of the Whole, or in the standing and select committees of the House.</p> 
<p>The standoff over this issue lasted for over an hour before proceedings continued. Later, McGovern tweeted that he had been banned from speaking on the House Floor.</p> 
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   <p lang="en" dir="ltr">Republicans just banned me from speaking on the House Floor for the rest of the day because I listed Trump's trials.<br><br>I didn't say he was guilty, I just stated the fact that they exist—and for that I was silenced.<br><br>Apparently, Republicans are allowed to say that Trump's trial is… <a href="https://t.co/ajpmtxAze1" target="_blank" rel="">https://t.co/ajpmtxAze1</a></p>— Rep. Jim McGovern (@RepMcGovern) <a href="https://twitter.com/RepMcGovern/status/1793343445924303246?ref_src=twsrc%5Etfw" target="_blank" rel="">May 22, 2024</a>
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<p>After these incidents, the bill cleared the committee, voting 204 to 203 before final debates. In final debates, Congressman Patrick McHenry cited support of FIT21, saying that the legislation <strong>“</strong>will cement the United States’ global leadership in technological innovation, invention, and adoption.”</p> 
<p>The vote concluded 279 in favor to 136 against with 71 Democrats voting in favor of the bill.</p> 
<p>“This vote represents years of tireless effort from policymakers, their staff, and the industry to safeguard consumers and keep the US at the forefront of digital innovation.&nbsp;It’s proof that innovation and consumer protection can coexist in the digital assets space. 71 Democrats voted in favor of keeping tech a nonpartisan issue.,” <a href="https://x.com/sheila_warren" target="_blank" rel="">Sheila Warren</a>, CEO of the <a href="https://cryptoforinnovation.org/" target="_blank" rel="">Crypto Council for Innovation</a>, said in a note obtained by crypto.news</p> 
<h2 class="wp-block-heading" id="what-s-next">What’s next?</h2> 
<p>Earlier on Wednesday, the White House publicly objected to the bill, <a href="https://crypto.news/white-house-objects-to-fit21-act/" rel="">citing</a> a lack of regulatory framework for digital assets. Regardless, the Biden administration expressed a willingness to collaborate with lawmakers to create clear crypto legislation, and he has stated that he will not veto the bill.&nbsp;&nbsp;</p> 
<p>The FIT21 Act’s journey does not end with a House vote. If passed, it will proceed to the U.S. Senate for further consideration. The House also voted and passed a bill explicitly banning the US Federal Reserve from issuing a CBDC.&nbsp;</p>

FIT21 bill passed by US House of Representatives

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