Democrats in the US House of Representatives will not have to vote against two bills
Democrats in the US House of Representatives will not have to vote against two pro-crypto bills expected to come up for a vote this week – although they are strongly urged to do so.
A May 20 email from Democratic Party leaders to House members, shared by Politico, shows the party did not urge its members to vote “no” on the Republican Financial Innovation and Technology Act for the 21st century (FIT21) and the opposition of the State. surveillance law. On central bank digital currencies (CBDC) – respectively HR 4763 and HR 5403.
Both projects were considered positive for the cryptocurrency sector if adopted.
FIT21 would, among other provisions, strengthen the process of classifying a cryptocurrency as a commodity or security, primarily handing regulatory oversight of the sector to the Commodity Futures Trading Commission.
The US cryptocurrency industry and lobbyists supported the bill, with 60 companies urging the House of Representatives to pass it in a letter dated May 16.
On the other hand, the CBDC Act will prevent the Federal Reserve from issuing central bank digital currency (CBDC).
However, the email stated that Reps. Maxine Waters and David Scott “strongly oppose” FIT21, while Waters opposes the Central Bank Digital Currency Act.
Politico then obtained a letter from the duo urging a vote against FIT21.
“I’m told House Democratic leaders said today they won’t attack the cryptocurrency bill introduced by House Republicans,” wrote Politico reporter Eleanor Mueller on X in reference to FIT21.
In the email, Democratic leaders objected to parts of the bill, including creating a process for trading digital assets on the secondary market if they are “initially offered as part of “investment contract securities” as defined by the SEC using the Howey test.
“This language undermines decades of law and jurisprudence, creating uncertainty in our traditional securities market,” the email said.
The executives also argued that the bill “weakens investor protections and opens the door to fraud and market manipulation” by providing a “safe harbor” where certain entities can file an intent to register.” and effective protection” for them with the SEC until it is registered. finalized and the CFTC (CFTC). Encryption rules.
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Meanwhile, the Central Bank Digital Currency (CBDC) Oversight Act would prevent the Federal Reserve from issuing central bank digital currencies (CBDCs), including through pilot programs.
Democratic leaders argue that stopping CBDCs would hinder the “US dollar priority” as other countries seeking to evade sanctions move forward with their own CBDCs.
“According to the Congressional Budget Office (CBO), the bill’s overly broad definition of CBDC raises concerns that the bill could harm the Fed’s ability to conduct monetary policy,” the email said. “Particularly troubling as he attempts to achieve a soft landing on inflation.” »
Discussion and approval of FIT21 is expected to take place on Wednesday, May 22, according to Politico’s Mueller.
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