The Blockchain Association has urged a House floor vote for the Financial Innovation and Technology for the 21st Century Act (FIT21), or H.R. 4763. The Association addressed a letter to House Speaker Mike Johnson and Minority Leader Hakeem Jeffries, emphasizing the necessity of regulatory clarity for the U.S. digital asset industry. The letter, signed by industry leaders such as Ripple, Kraken, and Circle, stresses the need for legislation that supports innovation and protects users and consumers.
The letter pointed out that since the inception of the Bitcoin network in 2009, the blockchain and digital asset industry has operated without targeted market regulation. The absence of clear rules has caused confusion in the marketplace and left users and consumers unprotected. The Blockchain Association seeks pro-innovation and pro-consumer regulations to ensure a fair and safe marketplace and to maintain U.S. technological leadership.
Regulatory Challenges in the U.S. Crypto Sector
U.S. regulators, particularly the Securities and Exchange Commission (SEC), have faced criticism for their approach to crypto regulation. The SEC’s regulation-by-enforcement strategy has been seen as stringent and anti-crypto, potentially driving American businesses overseas and stifling technological advancement. The Blockchain Association’s letter stated that the lack of regulatory clarity impedes innovation and harms America’s standing in the global technology race.
If FIT21 passes, it would assign the primary responsibility of digital asset regulation to the Commodities Future Trading Commission (CFTC). This shift aims to increase legal protections for consumers of crypto.
Congressional Developments Following SAB121 Resolution
The push for a House vote on FIT21 comes amid growing momentum for crypto legislation in Congress. Recently, Congress approved a resolution to potentially remove the SEC’s controversial accounting bulletin, SAB121, from its guidance. President Joe Biden has indicated he might veto the attempt to disavow SAB121, citing concerns over financial instability and market uncertainty. However, the strong bipartisan support against the SEC’s guidance may influence the President’s decision.
The passage of FIT21 would represent a significant development in U.S. digital asset regulation. The legislation aims to provide a structured regulatory framework, promoting innovation while offering necessary protections for users and consumers.