Washington, D.C. – The cryptocurrency industry achieved a significant milestone in U.S. policy on Wednesday as the House of Representatives passed a groundbreaking bill to regulate digital asset markets. The Financial Innovation and Technology for the 21st Century Act (FIT21) secured a 279-136 vote, with bipartisan support crossing party lines.
This legislation, a first of its kind in the U.S., now moves to the Senate where its future remains uncertain due to the absence of a counterpart bill. While this victory marks progress in establishing regulations for cryptocurrencies, the journey to full implementation is far from over.
Supporters of the bill, including Democratic Rep. Josh Gottheimer, emphasized the importance of establishing guidelines for the industry. Gottheimer described the legislation as “well-reasoned, thoughtful, bipartisan” and called for unity in making it law.
In a divided vote, 71 Democrats and 208 Republicans favored the bill, while 3 Republicans and 133 Democrats opposed it. President Joe Biden expressed his opposition to the bill through a policy statement, expressing concerns but stopping short of threatening a veto.
The bill, primarily championed by House Republicans, aims to regulate U.S. cryptocurrency markets by introducing consumer protections and appointing the Commodity Futures Trading Commission (CFTC) as a key regulator. Additionally, it seeks to differentiate between cryptocurrency tokens classified as securities or commodities.
Critics, such as Rep. Maxine Waters, raised concerns that the bill could potentially shield crypto businesses engaging in illegal activities from accountability. Waters argued that these entities have profited unlawfully and should not be rewarded through legalization.
Prior to the bill’s passage, the House deliberated on various amendments, with some changes being adopted while others were rejected. The ongoing debate surrounding cryptocurrency regulations highlights the complexity of navigating this rapidly evolving industry.