U.S. House Approves Crypto FIT21 Bill With Wave of Democratic Support

The U.S. House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), marking a significant legislative milestone for the crypto industry. The bill, which received bipartisan support with a 279-136 vote, now moves to the Senate where its future remains uncertain due to a lack of equivalent legislation and unclear support.

Despite opposition from key figures including President Joe Biden and SEC Chair Gary Gensler, the bill aims to establish comprehensive regulations for the crypto market, designating the Commodity Futures Trading Commission as the primary regulator. Critics, however, argue that the bill could undermine existing securities laws and reward previously unlawful crypto activities.

President Joe Biden opposed the FIT21 bill because he believed that it "lacked sufficient protections for consumers and investors who engage in certain digital asset transactions5." The bill aimed to establish a regulatory framework for digital assets markets, setting consumer protections and installing the Commodity Futures Trading Commission (CFTC) as a leading regulator of digital assets.

Although Biden did not explicitly state that he would veto the bill if it reached his desk, his administration's opposition to the bill was made clear in a policy statement. SEC Chair Gary Gensler also came out strongly against the legislation, arguing that it was unnecessary and endangered existing securities regulations.

Despite the opposition from the White House and some ranking Democrats, the Financial Innovation and Technology for the 21st Century Act (FIT21) passed the House of Representatives with a 279-136 vote, marking the industry's most significant legislative accomplishment in Congress. The bill now heads to the U.S. Senate, where its future remains uncertain.