A majority of members of the U.S. House of Representatives voted in favor of legislation to clarify the rules.

A majority of members of the US House of Representatives have voted in favor of legislation to clarify regulatory rules regarding digital assets.

In a 279-136 vote on May 22, House lawmakers approved HR4763, the Financial Innovation and Technology for the 21st Century (FIT21) Act. If passed by the Senate and signed into law, the bill would clarify the roles that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) play on digital assets. 71 Democrats joined 208 Republicans in voting in favor of the bill.

“Unfortunately, our current regulatory framework prevents digital asset innovation from reaching its full potential,” Rep. Patrick McHenry said before the House vote. “The SEC and CFTC are currently engaged in a food battle for control of these asset classes.”

Vote on FIT21. Source: United States House of Representatives

Rep. Maxine Waters, who also spoke before the vote, said she intended to oppose the legislation. She claimed the FIT21 bill would send cryptocurrencies into a “regulatory no-go zone,” adding that the language would allow traditional financial companies to operate without SEC oversight.

“This (bill) is probably the worst, most damaging proposal I’ve seen in a long time,” Rep. Waters said. “This bill will deregulate cryptocurrencies and certain traditional securities to the extent that I and other experts have expressed serious concerns that this bill would cause a potential market collapse and recession.”

about: US Lawmaker Addresses House of Representatives Ahead of FIT21 Vote: Bill ‘Will Stop Another FTX’

The House is still set to debate and vote on HR 5403, the anti-surveillance Central Bank Digital Currency (CBDC) Act, which would prohibit the Federal Reserve from issuing a digital dollar through intermediaries. The Democratic Party leadership reportedly said on May 21 that it did not support its members voting in favor of passing the anti-central bank digital currency bill or the FIT21 bill, but that it did not would not oppose the legislation.

Cryptocurrency legislation and an upcoming SEC decision on an Ethereum (ETH) spot exchange-traded fund come as the United States moves deeper into an election year, with digital assets in the spotlight. minds of many voters. President Joe Biden and former President Donald Trump, the presumptive 2024 Democratic and Republican Party nominees, have agreed to hold debates on June 27 and September 10.

review: Godzilla vs. Kong: SEC Faces Uphill Battle Over Legal Power of Cryptocurrencies

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