The rapidly changing digital asset landscape has resulted in a flexing of regulatory muscles between different watchdogs in defining terms and drawing lines of authority. This is especially true in the case of the United States where the SEC and CFTC are engaged in a turf war over regulatory oversight of the space. But this conflict could come to an end soon with the help of FIT21.
Weeks after the historic verdict on the Ripple vs. SEC case, the US is waiting for the approval of the Financial Innovation and Technology for the 21 Century Act (FIT21), which is being touted as a crucial step in advancing toward the much-needed regulatory clarity.
Coinbase CEO Pushes for FIT21
Brian Armstrong, the CEO of Coinbase, took to Twitter to explain that the House Financial Services Committee and the House Agriculture Committee in the US House of Representatives are taking an important step toward providing clarity for crypto by voting on the Financial Innovation and Technology for the 21st Century Act.
He urged the American citizens to email their representative to vote ‘Yes’ to it. The exec admitted that the legislation is only the first step in a bigger process but highlighted its importance in achieving the broader goal that the industry has been pinning for.
“FIT21 would create much-needed regulatory clarity in the United States for crypto and holds promising outcomes to protect consumers, promote job opportunities, and strengthen national security. However, we cannot achieve this alone – we need your support to ensure the legislative process continues to progress in Congress.”
🚨Introducing the Financial Innovation and Technology for the 21st Century Act. This bill establishes a regulatory framework for digital assets, protects consumers, fosters innovation, and positions America as a leader in finance and technology. #crypto
— House Committee on Agriculture (@HouseAgGOP) July 20, 2023
FIT21 essentially seeks to increase the Commodity Futures Trading Commission’s (CFTC) oversight over the crypto industry and clarify the jurisdiction of the Securities and Exchange Commission (SEC). The bill is now headed to the Senate for a vote, where it is expected to face considerable opposition from Democratic lawmakers.
Congresswoman Maxine Waters, the top Democrat on the House Financial Services Committee, aired her frustration and said she was “disappointed” that Republicans have made the unilateral decision to move forward with a massive market structure bill to rewrite the country’s investor protection laws. According to Waters, the bill exhibited a bias toward the interests of the crypto industry at the expense of regulators and consumers.
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