The Blockchain Association has made a plea for a comprehensive vote on the Financial Innovation and Technology for the 21st Century Act (FIT21), also known as H.R. 4763. In a letter addressed to U.S. House Speaker Mike Johnson and Minority Leader Hakeem Jeffries, the association emphasized the significance of regulatory clarity for the U.S. digital asset industry.
Prominent industry players, including Ripple, Kraken, and Circle, have already endorsed the letter from the Blockchain Association. The letter highlights the lack of targeted regulations in the blockchain and digital asset market since the emergence of the Bitcoin network in 2009.
Criticism has been directed towards regulators in the U.S., particularly the Securities and Exchange Commission (SEC), for their approach to crypto regulation. The SEC’s enforcement-focused regulatory policy has been seen as unfavorable to the crypto industry, potentially causing American companies to relocate abroad and impeding technological advancement in the country.
The Blockchain Association’s letter argues that the absence of regulatory clarity hinders innovation and damages the reputation of the United States in the global technology landscape.
If FIT21 is approved, the Commodities Futures Trading Commission (CFTC) would have greater authority over digital asset regulation, providing increased legal protection for crypto users worldwide.
The push for a House vote on FIT21 coincides with the growing momentum of crypto legislation in the U.S. Congress, following the approval of a resolution that could eliminate the SEC’s controversial accounting bulletin, SAB121.
President Joe Biden has expressed his intention to veto any attempt to reject SAB121, citing concerns about significant financial instability and market uncertainty. However, his stance may change if there is strong bipartisan support against the SEC’s crypto guidance.
Political considerations, particularly in light of the upcoming 2024 U.S. elections, could influence legislators’ decisions regarding the Financial Innovation and Technology Act of 2021 (FIT21). Figures like Senator Elizabeth Warren have emphasized their positions on the regulation and oversight of digital currencies as the election approaches.
(Source: Cryptopolitan, Reporting by Lawrence Damilola)
