That is a *huge* number of elected Democrats voting "no confidence" in the current SEC, and sending a message to the Biden administration that "anti-crypto" is a losing platform this year. pic.twitter.com/zmlD1VRQfF
The FIT21 bill, or H.R. 4763, received substantial support in the House, passing with a vote of 279-136. This included backing from 71 Democratic Party representatives alongside 208 Republicans. Despite this bipartisan support, its future remains unclear as it moves to the Senate, where no companion bill exists, and it faces significant opposition from critical figures like Senator Elizabeth Warren, a prominent crypto critic.
Challenges Ahead in the Senate
The bill’s progress in the Senate is anticipated to be slow and complex. The Senate, which is not bound by any time constraints, could take months to consider FIT21. If and when it does, the bill would likely undergo multiple rounds of reviews, hearings, and markups in committee. Should it pass these stages, a majority vote of 51 senators would be required to advance it.
Potential Amendments and Presidential Approval
FIT21 may change as House and Senate members collaborate to reconcile differences in their respective bill versions. Following these adjustments, the revised bill must pass through both chambers of Congress again before reaching President Biden’s desk. The President then has ten days to either sign or veto the bill. The Biden administration has opposed the bill, citing concerns over consumer and investor protections, but it has not explicitly stated if the President would veto it.
Industry Reaction and Regulatory Impact
71 House Democrats. Let that sink in— 71 House Democrats just joined Republicans to defeat the scape goating, fear mongering and ignorance of fellow legislators who refused to legislate. Thank you Congress— FIT21 is real progress.
The crypto industry has reacted positively to FIT21’s passage in the House. CoinbaseCo-Founder and CEOBrian Armstrong hailed the vote as a “total victory” and a significant step towards establishing clear regulatory rules for crypto. Armstrong emphasised that Americans want their representatives to protect their rights to use crypto and ensure regulatory clarity.
However, the bill’s potential impact remains a topic of debate. SECChairGary Gensler criticised FIT21 for creating “new regulatory gaps” and posing risks to capital markets stability. On the other hand, the bill’s provisions largely favour the Commodity Futures Trading Commission (CFTC) as the primary regulator, which the industry views as more lenient than the SEC.
Amendments and Bipartisan Efforts
WATCH: Whether you're a crypto supporter or a crypto skeptic, we can all agree: crypto investment is a risk.
That’s why I introduced an amendment to the FIT Act to add consumer protections: pic.twitter.com/fr3vE4ucIY
During the House discussions, three amendments were proposed. CongressmanGreg Casar’s amendment aimed to reduce the crowd fundraising limit for crypto entities from $75 million to $5 million did not pass—however, amendments by Reps. Brittany Pettersen and Ralph Norman were adopted. Pettersen’s amendment extended the Bank Secrecy Act to include digital asset entities, enhancing oversight and supporting anti-money laundering efforts. Norman’s amendment required a joint study by the Treasury Department, CFTC, and SEC to identify digital asset businesses owned by foreign adversaries.
Conclusion: The Path Forward
Despite the challenges ahead, the passage of FIT21 in the House represents a significant milestone in the legislative journey towards establishing a clear regulatory framework for the crypto industry. The coming months will determine whether the Senate will adopt the bill and how potential presidential opposition will shape its outcome. If enacted, FIT21 could bring much-needed clarity to the regulatory landscape, balancing oversight with innovation in the digital asset market.
