According to The Block, the United States House of Representatives passed a comprehensive market structure bill on Wednesday (22nd) aimed at regulating the entire cryptocurrency industry. This is also the first time the House of Representatives has voted on comprehensive cryptocurrency legislation.
The House of Representatives passed the “21st Century Financial Innovation and Technology Act” (FIT21) led by the Republican Party with 279 votes in favor and 136 votes against. 71 Democratic Party members, including former House Speaker Nancy Pelosi, voted in support of the bill.
The FIT21 bill will give the Commodity Futures Trading Commission (CFTC) more power and funding to oversee the cryptocurrency spot market and “digital commodities,” especially Bitcoin. The bill also creates a process that allows digital commodities initially issued as investment contracts to be traded on secondary markets. Stablecoins and anti-money laundering provisions are also included in the bill.
Although it is unlikely that the FIT21 bill will be brought to the Senate for consideration this year, the bill may lay the foundation for the new Congress in January. Ron Hammond, Director of Government Relations at the Blockchain Association, stated in a statement to The Block that Congress’s view on cryptocurrency is changing. Hammond added that FIT21 is a “major turning point” and the connection between cryptocurrency voters and the upcoming elections is undeniable. “The Biden administration seems to finally realize the potential consequences of maintaining the status quo.”
According to reports, the White House issued a statement on Wednesday stating that the government opposes the passage of FIT21, as it will affect the regulatory structure of digital assets in the United States. However, they express a desire to work with Congress to establish a regulatory framework for digital assets. Prior to the vote in the House of Representatives, SEC Chairman Gary Gensler released a statement condemning this cryptocurrency market structure bill, and several Democratic Party members expressed their opposition.
Related report: “Coinbase: The main catalyst for the upcoming cryptocurrency market or driven by regulation.”
