The U.S. House of Representatives has approved H.R. 4763, the Financial Innovation and Technology for the 21st Century Act (FIT21). The legislation incorporates comprehensive consumer protections and regulatory stipulations that its creators argue will enable digital asset innovation to flourish in the United States.
As per a press release from the Financial Services Committee, FIT21 was introduced last summer by Representatives Glenn "GT" Thompson (PA-15), French Hill (AR-02), Dusty Johnson (R-SD), Tom Emmer ((R-MN 6th District), and Warren Davidson (R-OH 8th District). It passed the House on May 22. The act includes new jurisdiction over digital commodities for the Commodity Futures Trading Commission (CFTC) and clarification of the Securities and Exchange Commission’s (SEC) jurisdiction over digital assets. Furthermore, it establishes a process to permit secondary market trading of digital commodities initially offered as part of an investment contract. Additionally, it imposes requirements related to customer disclosure, asset safeguarding, and operations on every entity mandated to register with the CFTC or SEC.
Representative Patrick McHenry (NC-10) stated in the press release, "The overwhelming support for FIT21 in the House should serve as a wake-up call to the Senate and this Administration. They must come to the table to ensure Americans who engage with digital assets can do so safely."
Hill echoed these sentiments in his statement, "As FTX’s collapse showed, we need a functional regulatory framework in place to create consumer protections that currently do not exist while ensuring America is a leader in the digital asset market. This legislation passed in a bipartisan manner, signaling that consumer protection and American innovation are priorities for lawmakers on both sides of the aisle."
Johnson added his perspective saying, "Without this bill, digital asset innovation will continue to be filled with uncertainty. Today’s victory gets us one step closer to establishing clear rules of the road for developers in the industry so America can remain a global hub for tech and finance innovation. I hope the Senate considers this bill soon so we can finalize this essential framework."
