- Investment bank TD Cowen has recently commented on the crypto bill FIT21, stating that it has almost no chance of becoming law this year.
- However, the bank also noted that the vote on the bill this month will shed light on how Democrats and Republicans view critical issues such as money laundering prevention and investor protections.
- Despite the low chances of the bill passing, it is expected to prepare US lawmakers for the next year and provide a critical building block for the Congress in 2025/26.
TD Cowen, a leading investment bank, has shared its views on the crypto bill FIT21, stating that it has almost no chance of becoming law this year. However, the vote on the bill could provide valuable insights into lawmakers’ stance on critical issues in the crypto market.
TD Cowen: No Chance for Crypto Bill to Pass
According to TD Cowen, there’s no chance for a crypto market structure bill to become law in this Congress. However, this bill will prepare US lawmakers for the next year. The House of Representatives will vote on the Financial Innovation and Technology Act for the 21st Century (FIT21) later this month. The bill, led by Republicans and also known as FIT21, adopts a comprehensive approach to regulate crypto in general and also imposes more responsibility on the Commodity Futures Trading Commission.
Voting on the Bill Will Shed Light on Key Issues
The US has been trying to regulate the crypto space for a long time. According to the investment bank, it’s not very likely for FIT21 to pass the Senate. Leading Democrat Representatives from California, like Maxine Waters, oppose the bill. Senate Banking Committee Chairman Sherrod Brown, D-Ohio, has remained quite silent on this issue. TD Cowen added that the vote on the bill could shed light on how Democrats and Republicans view critical issues such as money laundering prevention and investor protections.
Crypto Bill FIT21
The bill passed the House Financial Services Committee and the House Agriculture Committee last summer. The legislation faces a tougher battle than a bill to regulate stablecoins, which saw some movements last year. House Financial Services Committee Chairman Patrick McHenry, who announced that FIT21 will be voted on, described the bill as a bipartisan effort to “finally provide clarity”. McHenry said, “Congress will take a historic step to provide a clear regulatory framework for digital asset markets”. Meanwhile, McHenry is retiring at the end of his term in January 2025. He is also pushing to get crypto laws across the finish line.
Conclusion
While the chances of FIT21 becoming law this year are slim, the bill’s voting process will provide valuable insights into lawmakers’ stance on critical issues in the crypto market. The bill is expected to prepare US lawmakers for the next year and provide a critical building block for the Congress in 2025/26. The crypto community will be closely watching the developments around this bill.
