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Crypto community anticipates House vote on FIT21 Act for digital asset regulations

  • US House of Representatives is set for a floor vote on the FIT21 Act next week.
  • Top crypto companies signed a letter to the US House, soliciting the bill's passage.
  • House verdict would be instrumental to the progress of the crypto industry in the United States.

With the House of Representatives set for a floor vote on the Financial Innovation & Technology for the 21st Century Act (FIT21) next week, nearly 60 crypto companies signed a letter on Friday, encouraging lawmakers to vote for the bill.

Also read: US House Committee set to address regulatory issues over digital assets through review of FIT21 Act

Crypto industry gears up for FIT21

The US House of Representatives will hold a floor vote on the FIT21 Act next week after the measure was cleared by the House Committee on Financial Services last week.

The Crypto Council for Innovation took action on May 16 by signing a letter to House members on the need to support the bill. Nearly 60 crypto companies signed the letter to the US House of Reps, including top exchanges, such as Coinbase and Kraken, and venture capital firm Andreessen Horowitz (a16z).

The letter, addressed to the Speaker of the House, Mike Johnson, and the minority leader, Hakeem Jeffries, suggests that by passing the legislation, the US "can accelerate the growth of blockchain technology and digital assets, fostering financial inclusion and protecting national security." 

Read more: Senate votes to overturn SEC rule preventing highly regulated financial firms from custodying digital assets

The FIT21 Act contains significant consumer safeguards, including minimum capital standards, risk disclosure requirements, bankruptcy protection extensions, segregation of customer funds, and conflict of interest resolutions. It would also set the Commodities & Futures Trading Commission (CFTC) as the leading regulator of digital assets, with only a few issues falling under the SEC's regulatory oversight.

The House verdict would prove instrumental to the progress of the crypto industry in the United States, especially following the recent vote by the Senate on May 16 to overturn the Securities & Exchange Commission's (SEC) SAB121 rule.

Also read: SEC Chair “knowingly misled” Congress over Ethereum status, House's McHenry says

While the crypto community continues to hope for better regulations and an innovative environment for the industry, industry leaders have shown major support toward pro-crypto candidates as the upcoming US elections draw near.

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