The US House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) on May 22. A total of 279 representatives voted in favor of the proposed crypto legislation, with 136 voting against it and 15 abstaining from voting.
The bill, which received bipartisan support, was mainly backed by Republican representatives, with 208 out of 217 voting yes. In contrast, only 71 out of 213 Democratic representatives supported the bill.
Despite some opposition, the bipartisan approval of FIT21 has been praised within the crypto sector. Crypto exchange Coinbase highlighted the “strong bipartisan support,” while CLO Paul Grewal described the 71 Democratic votes as “real progress” towards legislative action.
Although the bill has passed the House, it is not yet law and still needs to be voted on by the Senate at a later date.
If passed, Chairman Patrick McHenry believes the bill will provide regulatory clarity and consumer protections to help the US crypto ecosystem thrive. The legislation aims to define how the SEC and CFTC can regulate crypto as securities and commodities, create registration regimes, ensure issuer disclosures, and clarify relevant regimes for each issuer.
There has been opposition to FIT21, with some lawmakers and regulators expressing concerns. Democratic Representative Maxine Waters argued that the bill could allow crypto companies to evade responsibility for unlawful activities, while SEC chair Gary Gensler criticized the legislation for undermining the agency’s powers over investment contracts and securities.
Despite this opposition, the White House has stated that it opposes the bill but does not intend to veto it if it passes the Senate floor.
