US lawmakers pass FIT21 crypto bill impacting SEC
Lawmakers from the US have united to pass a crypto bill known as the Financial Innovation and Technology for the 21st Century Act (FIT21). This significant moment took place on May 22 when 279 out of 136 members of the US House of Representatives approved the bill. The House of Representatives, along with the US Senate, comprise the two chambers of Congress responsible for creating legislation.
The US has now joined countries like India, Japan, and South Korea in working towards regulating the digital assets sector. The aim of the FIT21 bill is to clearly define which authorities have jurisdiction over the crypto industry, ensuring security without hindering its growth.
The FIT21 bill reportedly establishes distinct definitions for different types of crypto assets to help exchanges understand which assets are considered securities. This clarity is intended to prevent conflicts between crypto exchanges like Binance and Coinbase and the SEC, which have impacted the growth of the sector.
The bill also divides the oversight of the digital assets industry between the Commodity Futures Trading Commission and the Securities and Exchange Commission (SEC). The CFTC may have a more prominent role in overseeing crypto compared to the SEC, which has faced criticism under the leadership of Gary Gensler.
Gensler has opposed the bill, citing issues with the lack of compliance in the crypto industry. However, stakeholders in the US crypto sector are celebrating the passage of the FIT21 bill, with Coinbase CEO Brian Armstrong and others hailing the vote as a historic moment.
The bill will now progress to the Senate for approval before becoming law. Following this development, most cryptocurrencies saw price increases on May 23, with Bitcoin and Ether trading at $69,485 and $3,789, respectively.
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