California Democratic Congresswoman Maxine Waters (D-CA) and David Scott (D-GA) have announced that they will not be urging Democrats to vote against the Financial Innovation and Technology for the 21st Century Act (FIT21) before the expected vote on Wednesday.
In an email obtained by Politico on Monday, the Democratic Whip’s office revealed this decision. Despite their strong opposition to the crypto regulatory framework, Waters and Scott have chosen not to pressure party members to vote against it.
FIT21, officially known as H.R. 4767, has received support from several stakeholders in the crypto space. This bill is expected to bring much-needed clarity to the digital asset industry by expanding the regulatory jurisdiction of the CFTC over cryptocurrencies.
However, some critics argue that the bill may undermine existing measures aimed at preventing volatility in the cryptocurrency market.
The email from the Democratic Whip’s office highlighted concerns that the bill could disrupt long-standing legal precedents and create uncertainty in traditional securities markets. Additionally, the bill includes provisions that allow entities to file an “intent to register” if certain criteria are met, effectively shielding them from SEC rules and regulations until the SEC and CFTC finalize their own rules.
Critics claim that this provision may reduce investor protections and enable fraud and market manipulation.
The Securities and Exchange Commission (SEC) has faced accusations of using enforcement actions as a means of regulating cryptocurrencies. In recent years, the SEC has taken several enforcement actions against industry players, raising concerns that it may be pushing crypto businesses to relocate abroad and stifling innovation.
Earlier, Cryptopolitan reported that the Blockchain Association had written a letter to Speaker of the House Mike Johnson (R-LA) and House Minority Leader Hakeem Jeffries (D-NY), urging a House floor vote on FIT21. The association stated that the bill would help U.S. operators navigate the regulatory environment and called for a pro-innovation and pro-consumer framework to protect the American marketplace and maintain U.S. dominance in the crypto sphere.
The letter stated, “This lack of clarity hinders innovation and restricts companies, which harms America’s position in the global technology race. We are seeking guidelines that promote innovation and protect consumers to ensure a fair and secure marketplace, as well as to safeguard U.S. technological leadership in this cutting-edge field.”
Reported by Lawrence Damilola for Cryptopolitan.
