Rep. Patrick McHenry, Chairman of the House Financial Services Committee, has announced that the Financial Innovation and Technology for the 21st Century Act (FIT21), a comprehensive bill aimed at regulating the crypto industry, will be put to a vote next week. This vote holds great significance as McHenry, a Republican from North Carolina, nears the end of his congressional career.
If passed, FIT21 would be a major milestone in the regulation of cryptocurrency in the United States. The bill is the most significant crypto-related legislation to reach this stage in Congress and has already achieved success in the House, including the passage of measures challenging the Securities and Exchange Commission’s (SEC) crypto accounting policies.
Speaking at the DC Blockchain Summit, McHenry stated, “We will have this bill on the House floor next week for a vote.” The bill’s progress heavily relies on bipartisan support, a point that McHenry emphasized at the summit. The success of FIT21 in the House could influence its reception and progress in the Senate.
Representative French Hill, who heads a crypto subcommittee and is considered a potential successor to McHenry, expressed optimism about the bill receiving substantial support from both parties. He highlighted that 21 Democrats previously supported a move to overturn the SEC’s controversial crypto accounting provision, despite President Joe Biden’s veto threat.
Hill revealed that FIT21 is a response to President Biden’s executive order, which called for legislative action in the cryptocurrency sector. The bill aims to establish a more structured market for digital assets in the U.S., providing clarity and security for the industry’s operations.
While the House seems poised to pass FIT21, its future in the Senate remains uncertain. McHenry acknowledged that anything could happen in the lame-duck session of Congress, which occurs after the November elections and before the new Congress convenes. It is common for bills to be attached to other legislation to facilitate their passage through the legislative process.
Nevertheless, the House vote on FIT21 will play a crucial role in shaping the Senate’s approach to the bill.
