FIT21 is expected to face challenges in the Senate, likely delaying enactment until after the November elections.
Despite receiving support from both Democrats and Republicans and receiving authorization from the House of Representatives, the Financial Innovation and Technology for the 21st Century Act (FIT21) is likely to face obstacles in the Senate.
FIT21 Unlikely to Pass Senate Before Election
Analysts believe that enactment may not occur before the November election. At the 2024 Consensus event, politicians, lawyers, and lobbyists voiced their worries that, because of the opaque nature of FIT21, additional fine-tuning is required.
This is despite the fact that there is a growing universal consensus regarding the necessity of cryptocurrency regulation. Therefore, they have predicted that the Senate’s approval of this bill prior to the November elections is highly unlikely.
Despite this, Congress’s stance on digital assets has significantly changed, as evidenced by the House of Representatives’ approval of the full FIT21 bill just 18 months after the FTX incident’s political backlash.
Commissioner Summer Mersinger of the Commodity Futures Trading Commission (CFTC) highlighted the risks of passing and enforcing similar large legislation, pointing out that rule-making often takes months or even years after the bill’s enactment.
Congressional Support and Regulatory Hurdles
Mersinger successfully drew a comparison between the Dodd-Frank Act’s implementation timeline and the duration needed for a regulatory change to take effect. The fundamental jurisdictional split between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) with reference to digital assets is the motive for FIT21.
Nevertheless, President Joe Biden’s administration has expressed concern about the potential for the formation of some regulatory gaps that could pose a threat to market efficiency.
Commissioner Hester Peirce of the Securities and Exchange Commission (SEC) also stated her support for further legislative participation in the realm of cryptocurrencies and condemned the actions taken by the SEC in the past. She also emphasized the importance of ensuring that the legislation is clear.
At the same time, Republican Representative Tom Emmer referred to cryptocurrencies as non-partisan matters and advocated for the implementation of appropriate regulatory advice that would place an emphasis on rights rather than prohibitions.
His remarks, which he presented at the Consensus 2024 conference, are in good agreement with the opinions that other legislators have expressed in favor of more stringent regulation of cryptocurrencies. a Pro-Crypto Legislative Force.
Building a Pro-Crypto Legislative Force
Senator Cynthia Lummis of the United States of America has reaffirmed the growing support for cryptocurrency within the United States Congress.
Lummis announced the formation of a pro-crypto army in Congress to advocate for favorable business regulation. A string of legislative victories attributed to the promotion of cryptocurrencies preceded this announcement.
Social media users have responded to this new development with a number of encouraging comments, especially from cryptocurrency enthusiasts who are hopeful about the prospect of more favorable legal regimes in the future.