“House of Representatives in the US Passes Encryption Market Structure Act with Support from Multiple Democratic Representatives FIT21”

"House of Representatives in the US Passes Encryption Market Structure Act with Support from Multiple Democratic Representatives FIT21"

"House of Representatives in the US Passes Encryption Market Structure Act with Support from Multiple Democratic Representatives FIT21"

According to a report by The Block, the US House of Representatives passed a comprehensive market structure bill on Wednesday (22nd) aimed at regulating the entire cryptocurrency industry. This is also the first time the House of Representatives has voted on comprehensive cryptocurrency legislation.

The House of Representatives passed the Republican-led “Financial Innovation and Technology Act of the 21st Century” (FIT21) with 279 votes in favor and 136 votes against. Seventy-one Democratic lawmakers, including former House Speaker Nancy Pelosi, voted in support of the bill.

The FIT21 bill grants the Commodity Futures Trading Commission (CFTC) more power and funding to oversee the cryptocurrency spot market and “digital commodities,” particularly Bitcoin. The bill also creates a process that allows digital commodities initially issued as investment contracts to be traded on secondary markets. Stablecoins and anti-money laundering provisions are also included in the bill.

Although the FIT21 bill is unlikely to be brought to the Senate floor this year, it may lay the foundation for the new Congress in January.

Ron Hammond, Director of Government Relations at the Blockchain Association, stated in a statement to The Block that Congress’s view on cryptocurrency is changing. He added that FIT21 is “a major turning point” and the connection between cryptocurrency voters and the upcoming elections is undeniable. “The Biden administration seems to finally realize the potential consequences of maintaining the status quo.”

According to reports, the White House issued a statement on Wednesday opposing the passage of FIT21, stating that it would affect the regulatory structure of US digital assets, but expressed a desire to “work with Congress” to establish a framework for digital asset regulation. Before the vote in the House of Representatives, SEC Chairman Gary Gensler issued a statement condemning this cryptocurrency market structure bill, and several Democratic lawmakers expressed their opposition.

Related report: “Coinbase: The main catalyst for the upcoming cryptocurrency market or driven by regulation.”