According to a report by The Block, investment bank TD Cowen stated that a cryptocurrency market structure bill called the “21st Century Financial Innovation and Technology Act” (FIT21) may not have a chance to become law in this Congress, but the bill will prepare US lawmakers for next year’s work.
This Republican-led bill takes a comprehensive approach to regulating the entire cryptocurrency market and transfers more responsibilities to the Commodity Futures Trading Commission (CFTC). The bill will undergo a full vote in the House at the end of this month.
FIT21 is unlikely to pass in the Senate as Democratic Representative Maxine Waters opposes the bill, and Democratic Senator Sherrod Brown, the chairman of the Senate Banking Committee, has remained silent on the issue. However, TD Cowen wrote:
TD Cowen added that the vote on the FIT21 bill could also reveal how Democrats and Republicans view key issues such as anti-money laundering and investor protection. They expect the bill to pass unanimously in the House.
The pending bill has some slight differences from the original version, mainly technical amendments. One of the changes includes the addition of Majority Whip Tom Emmer’s “Token Clarity Act,” which aims to clarify the classification of digital assets and create a new definition for tokens that fall between commodities and securities.
Trump’s position may not be maintained after being elected
US presidential candidate Donald Trump expressed support for cryptocurrencies in a recent event. However, TD Cowen stated that if Trump wins the presidential election this year, it is unclear whether he will maintain this supportive stance. The investment bank believes that Trump could become a “complex factor” in the future.
During the event, Trump stated in response to a question from attendees, “Cryptocurrencies are leaving the US due to hostility towards them.” He expressed his desire to prevent this situation and said, “If you support cryptocurrencies, you better vote for Trump.”
TD Cowen states:
