The House Financial Services Committee revealed on Friday, May 10, its plan to discuss the Financial Innovation and Technology for the 21st Century (FIT21) Act.
This move sets the stage for a significant vote later this month, showing Congress’s dedication to bringing clarity and clear rules for cryptocurrency and other digital assets.
Chairman Glenn Thompson introduced the act with Rep. French Hill, Rep. Dusty Johnson, Whip Tom Emmer, and Rep. Warren Davidson. The goal is to establish clear federal requirements for = ensuring consumer protection and regulatory clarity for the U.S. crypto industry to thrive.
Chairman Patrick McHenry of the House Financial Services Committee stressed the importance of the FIT21 Act in addressing long-standing regulatory uncertainties, saying, “The U.S. digital asset ecosystem has suffered from regulatory uncertainty for too long, hindering innovation and leaving consumers vulnerable.”
McHenry added, “This comprehensive market structure legislation is the result of years of bipartisan work to finally bring clarity.”
The FIT21 Act suggests several key measures to improve transparency, accountability, and consumer protection within the crypto asset ecosystem.
It gives the Commodity Futures Trading Commission (CFTC) authority over crypto commodities.
It clarifies the Securities and Exchange Commission’s (SEC) control over digital assets offered as part of an investment contract.
Congressman French Hill highlighted the importance of the legislation given recent market events, saying, “The FTX collapse showed us the need for strong consumer protections and a solid regulatory framework to ensure the growing digital asset ecosystem is safe for investors and consumers, while keeping America at the forefront of blockchain innovation.”
Reacting to the announcement, Ro Khanna, U.S. representative from California’s 17th congressional district, stressed that regulatory uncertainty has driven innovation and job opportunities away from the United States.
He pledged support for the bill, provided that no harmful amendments are made. Khanna also emphasized the importance of defining securities versus commodities and implementing safeguards to protect consumers from scams.
The lawmaker expressed readiness to support amendments that bolster consumer protections as the bill moves through the legislative process.
Summary Review: The consideration of the FIT21 Act by the House Financial Services Committee represents a significant step towards providing clarity and regulatory certainty for the rapidly evolving digital asset ecosystem. With bipartisan support and a focus on consumer protection and innovation, this legislation aims to address longstanding regulatory uncertainties that have hindered the growth of the U.S. crypto industry. By establishing clear federal requirements and enhancing transparency and accountability measures, the FIT21 Act seeks to create a safer environment for investors and consumers while positioning America as a leader in blockchain innovation. As the bill progresses through the legislative process, stakeholders are hopeful that it will pave the way for a more robust and secure digital asset market.
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.
