PYMNTS MonitorEdge May 2024

US House to Vote on Crypto Bill

A bill that promises regulatory clarity for digital assets has moved a step closer to a vote in the U.S. House.

The House Committee on Rules said Friday (May 10) that it will consider the Financial Innovation and Technology for the 21st Century (FIT21) Act (H.R. 4763), which means the bill could go to a floor vote later in May, the House Financial Services Committee said in a Friday press release.

“With the floor vote announced today, Congress will take a historic step to provide a clear regulatory framework for digital asset markets,” Patrick McHenry, chairman of the House Financial Services Committee, said in the release. “This legislation will cement American leadership of the global financial system for decades to come and bolster our role as an international hub for innovation.”

Introduced on July 20, FIT21 established federal requirements over digital assets, providing the Commodity Futures Trading Commission (CFTC) with new jurisdiction over digital commodities and clarifying the Securities and Exchange Commission’s (SEC) jurisdiction over digital assets offered as part of an investment contract, according to the release.

The bill also establishes a process for permitting the secondary market trading of digital commodities that were initially offered as part of an investment contract and imposes requirements on entities required to be registered with the CFTC or the SEC, per the release.

Congressman French Hill, one of the legislators who introduced the bill, said in the Friday press release: “After working tirelessly across the aisle and across the nation over the past year to craft a clear, pragmatic regulatory framework for digital assets, I am proud that this landmark legislation is coming to the House floor.”

The cryptocurrency industry has long been asking Washington for more regulatory clarity, and this bill could put the sector on the road to that goal, PYMNTS reported in July when the bill was introduced.

FIT21 would delineate when a cryptocurrency is a commodity or security and assign oversight appropriately between the CFTC and the SEC.

“As the collapse of FTX demonstrated, we need strong consumer protections and a functional regulatory framework to ensure the rapidly growing digital asset ecosystem is safe for investors and consumers while securing America as a leader in blockchain innovation,” Hill said in the Friday press release.