FIT21 Unlikely to Pass Senate Before November Elections
While the Financial Innovation and Technology for the 21st Century Act (FIT21) has received bipartisan support and passed the House of Representatives, the legislation is likely to face challenges in the Senate as analysts believe it may not be possible before the November elections. approved.
FIT21 Unlikely to Pass Senate Before Election
While there is general consensus on the need for cryptocurrency regulation, lawmakers, advocates, and lobbyists expressed concerns at the 2024 Consensus event that further fine-tuning was needed due to FIT21’s lack of transparency. Therefore, they predict that there is a high probability that this bill will not pass the Senate before the November elections.
However, the passage of the entire FIT21 bill in the House just 18 months after the political backlash resulting from the FTX scandal indicates a sharp change of heart in Congress regarding digital assets.
CFTC Commissioner Summer Mersinger noted that rulemaking can often take months or even years after the bill is enacted, noting the obligations that come with enacting and implementing similar comprehensive legislation. By determining the time required for a regulatory change to take effect, Mersinger was able to equate it to the long period required to implement the Dodd-Frank Act.
Congressional Support and Regulatory Barriers
The impetus behind FIT21 stems from the formalization of the primary separation of jurisdiction between the SEC and CFTC regarding digital assets. However, the Biden administration has expressed concern about the possibility of some regulatory gaps that could threaten market efficiency.
SEC Commissioner Hester Peirce also spoke about the need for regulatory clarity, criticizing the SEC’s previous actions and welcoming the commitment to improved legislation in the field of cryptocurrencies.
At the same time, Republican representative Tom Emmer classified cryptocurrencies as non-partisan businesses and called for the creation of appropriate regulatory guidance focusing on rights rather than restrictions. His speech at Consensus 2024 aligns well with sentiments shared by other lawmakers who support better regulation of cryptocurrencies.
Building a Pro-Crypto Legislative Power
As previously reported by Coingape, US Senator Cynthia Lummis reaffirmed the strengthening support for cryptocurrency within Congress.
Following a series of legislative victories attributed to support for cryptocurrencies, Lummis declared the creation of a pro-crypto army in Congress to encourage positive regulation of the industry.
This development has received some positive reactions on social media, especially among cryptocurrency enthusiasts who are optimistic about more positive regulatory frameworks in the future.
Also read: ripple CTO David Schwartz Shared “Proof” That He Is Not Satoshi Nakamoto
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Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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