In a significant development, the FIT21 bill, which favours the cryptocurrency industry, has successfully passed the vote in the House of Representatives.
Key Provisions of the FIT21 Bill
The FIT21 bill aims to enhance the regulatory landscape for digital assets in the following ways:
- Increased CFTC Authority: The bill grants the U.S. Commodity Futures Trading Commission (CFTC) more authority over the spot market for digital assets classified as commodities.
- New Jurisdictional Lines for SEC: It establishes clearer jurisdictional boundaries for the Securities and Exchange Commission (SEC), providing a structured framework for determining whether digital assets qualify as securities.
- Regulatory Framework for Crypto Companies: Crypto companies and digital asset issuers will have a clearer framework for understanding whether and how their assets qualify as securities. This will help them identify their primary regulators more easily.
Uncertain Path in the Senate
The bill’s future in the Senate is less clear. The White House earlier stated that it opposes the legislation on Wednesday, yet President Joe Biden has not threatened a veto.
