Nancy Pelosi, the former Speaker of the U.S. House of Representatives, might be supporting the Financial Innovation and Technology for the 21st Century Act (FIT21), a crypto bill led by Republicans.
According to sources familiar with Pelosi’s stance, she may back the bill, which is approaching a vote on May 22.
Pelosi‘s support would put her at odds with fellow Democrats like Maxine Waters and David Scott, who have opposed the bill. However, a leaked May 20 email from Democratic Party leaders indicated that House Democrats won’t be urged to vote against it.
The bipartisan bill aims to clarify cryptocurrency regulations in the U.S., addressing ongoing issues related to market oversight and consumer protection. It seeks to define the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
A key proposal in the bill is to redefine the SEC’s jurisdiction over cryptocurrencies by updating the 90-year-old Howey test. This update aims to better fit the unique characteristics of digital assets, creating a clear distinction between digital commodities and securities.
The crypto industry has largely welcomed FIT21 for its potential to refine the regulatory landscape. The bill proposes transferring much of the oversight to the CFTC, which is known for its more lenient approach towards the industry.
Mark Hays, a senior policy analyst on fintech with Americans for Financial Reform, noted that this change aligns with the industry’s preference for the CFTC’s more accommodating regulatory style, which has been a longstanding request.
As of now, at least eight House Democrats have publicly declared their support for the bill. These include Representatives Wiley Nickel (D-N.C.), Yadira Caraveo (D-Colo.), Jim Himes (D-Conn.), Jasmine Crockett (D-Texas), Ritchie Torres (D-N.Y.), Darren Soto (D-Fla.), Josh Gottheimer (D-N.J.), and Don Davis (D-N.C.).
These lawmakers believe that regulating the cryptocurrency market “should not be a partisan issue” and view the bill as a “crucial opportunity” to establish clear and effective regulations.
Summary Review: Nancy Pelosi’s potential support for the FIT21 crypto bill signifies a notable shift in the legislative landscape for cryptocurrency regulation in the U.S. While it puts her at odds with some fellow Democrats, it highlights a bipartisan effort to address longstanding regulatory issues. The bill’s focus on updating the SEC‘s jurisdiction and transferring oversight to the more lenient CFTC has been welcomed by the crypto industry. With at least eight House Democrats already backing the bill, lawmakers emphasize that this regulatory framework is a critical opportunity to ensure a balanced and clear approach to managing digital assets. The upcoming vote on May 22 will be a pivotal moment for the future of cryptocurrency regulation in the United States.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
