The U.S. House of Representatives cast a symbolic crypto vote in favor of the Futures Industry and Technology Act of 2021 (H.R. 4763), a groundbreaking bill that aims to revolutionize the regulatory landscape for digital assets in the United States.
A Watershed Moment for Crypto Market Structure
This vote marks the first time the House has considered a bill specifically addressing the regulation of crypto markets. By granting greater authority to the Commodity Futures Trading Commission (CFTC) over digital assets deemed as commodities and establishing clearer jurisdictional lines for the Securities and Exchange Commission (SEC), H.R. 4763 seeks to provide a comprehensive framework for the oversight of this rapidly evolving industry.
Furthermore, the bill’s critical provisions establish a framework for crypto companies and digital asset issuers to determine whether and how their assets qualify as securities under the definition provided by the bill.
Notably, this clarity would allow these entities to identify their primary regulator, ensuring appropriate oversight and regulatory compliance.
Led by Financial Services Committee Chairman Patrick McHenry (R-N.C.), H.R. 4763 garnered significant bipartisan support in the House. McHenry expressed optimism that the substantial vote in favor of the bill reflects a growing momentum for digital asset legislation, following the Senate’s recent resolution overturning SEC accounting guidance.
Although the bill is expected to pass the House, its fate is in the Senate remains uncertain. Furthermore, the White House has opposed the legislation, although President Biden has not explicitly threatened a veto.
Landmark Crypto Bill Passed
The U.S. House of Representatives passed the Future of Innovation Technology (FIT21) Act by a landslide margin, marking a significant step forward for cryptocurrency regulation in the United States. The bill, which aims to clarify the regulatory framework for digital assets, will now move to the Senate for further consideration.
FIT21 introduces a number of changes to the current regulatory landscape for cryptocurrencies. Most notably, it proposes to exempt “sufficiently decentralized” cryptocurrencies from securities regulations enforced by the Securities and Exchange Commission (SEC). This exemption would provide significant regulatory relief for many crypto projects.
The FIT21 Act also places cryptocurrencies under the jurisdiction of the Commodity Futures Trading Commission (CFTC), which is responsible for regulating commodities and futures markets. This move aligns with the CFTC’s existing oversight of other digital commodities, such as Bitcoin and Ethereum.
The passage of FIT21 in the House represents a major victory for the crypto industry, which has long sought regulatory clarity. The bill now faces an uncertain future in the Senate, but its bipartisan support in the House suggests that it has strong momentum.
