The US House of Representatives on Wednesday night passed the Cryptocurrency Market Structure Act, which aims to regulate the entire industry.
The bill, called the Financial Innovation and Technology for the 21st Century Act (FIT21), would effectively classify cryptocurrencies as commodities rather than securities, exempting them from securities regulation, and would also determine their oversight, including whether they should be regulated by the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
The Republican-led bill, the first standalone piece of legislation of its magnitude, passed the House on a 279-136 vote, with the support of 71 Democrats, including former House Speaker Nancy Pelosi of California.
Crypto bill passes US House of Representatives despite SEC chairman’s criticism Gary Gensler, who publicly voiced his opposition in addition.
Gensler stated“FIT21 will create new regulatory gaps, undermine decades of precedent regarding the oversight of investment contracts, and expose investors and capital markets to untold risks,” he said, adding that cryptocurrencies He reiterated his position that investment contracts are considered securities, and expressed concern that the bill would exclude investment contracts recorded on blockchain from the legal definition of securities and would no longer be protected by federal securities laws.
Yesterday, hours before the vote, the White House also announced its opposition to the bill, citing concerns about insufficient investor protections. President Biden announced statement He said he opposes the bill but has not threatened to veto it.
What’s next?
The bill now needs to be approved by the Senate, which will be difficult with key Democrats in the Senate showing little interest.
The bill is highly unlikely to pass Congress, but it could shed light on how Democrats and Republicans view cryptocurrency regulation.
The reactions of both political parties are important in an election year in which cryptocurrency has become a politicized issue, with Republican presidential candidate Donald Trump accepting crypto donations and Democrats taking an open stance on the currency.
