U.S. House to Vote on FIT21 Cryptocurrency Bill for the First Time Today

The U.S. House of Representatives will vote for the first time this afternoon on the Financial Innovation and Technology for the 21st Century Act (FIT21), which aims to reshape the regulatory landscape for digital assets. Expected to pass with bipartisan majority support, FIT21 gives the Commodity Futures Trading Commission (CFTC) greater spot market authority over digital assets and creates new jurisdictional boundaries for the Securities and Exchange Commission (SEC). Patrick McHenry, chairman of the Financial Services Committee, wants the legislation to demonstrate momentum over digital assets. A handful of Democrats are expected to join a majority of Republicans in supporting it, but the prospects are uncertain in the Senate, where the White House has expressed opposition but not threatened a veto. Supporters such as Jim Himes and Ro Khanna see the bill as an important step. Opponents such as Maxine Waters worry that deregulation could lead to market disruption. Groups including the AFL-CIO have asked the House to oppose the bill, concerned that it weakens existing securities laws and raises risks, and SEC Chairman Gary Gensler has warned that the bill could allow financial fraud to escape regulation.