- The FIT21 Act, passing the House amid bipartisan support, now faces Senate challenges and is unlikely to pass before the November elections.
- Despite the hurdles, there is growing bipartisan momentum for crypto regulation.
- Key focus areas include the regulatory framework between the SEC and CFTC for digital assets.
The FIT21 Act faces significant challenges in the Senate, despite passing the House with bipartisan support. Discover the key hurdles and the growing momentum for crypto regulation.
FIT21 Unlikely to Pass Senate Before Election
Even though the Financial Innovation and Technology for the 21st Century Act (FIT21) has received bipartisan support and passed through the House of Representatives, the act is likely to face challenges in the Senate. Analysts believe that before the November election, it may not be approved. While there is increasing general agreement on the necessity for cryptocurrency regulation, legislators, lawyers, and lobbyists raised concerns at the 2024 Consensus event that due to the opaqueness of FIT21, more fine-tuning is required. Therefore, they forecast that this bill is likely not to pass in the Senate before the November polls.
Congressional Support and Regulatory Hurdles
The drive behind FIT21 is derived from formalizing the primary jurisdictional divide between the SEC and CFTC regarding digital assets. However, the Biden administration has presented its concern regarding the possibility of the emergence of some regulatory voids that may threaten market efficiency. SEC Commissioner Hester Peirce also spoke about the need for clarity of the legislation, criticized the previous actions of the SEC, and expressed her welcoming of the enhanced legislative engagement in the sphere of cryptocurrencies.
Building a Pro-Crypto Legislative Force
As earlier reported by CoinOtag, U.S. Senator Cynthia Lummis had reaffirmed the strengthening support for cryptocurrency within Congress. After a series of legislative wins attributed to the promotion of cryptos, Lummis declared the creation of a pro-crypto army to promote favorable regulation of the industry. This development has received some positive responses on social media, specifically among cryptocurrency enthusiasts who are optimistic about further favorable regulatory frameworks in the future.
Conclusion
The FIT21 Act’s journey through the legislative process highlights the complexities and challenges of establishing a comprehensive regulatory framework for digital assets. While the Act faces significant hurdles in the Senate, the growing bipartisan support for crypto regulation suggests a promising future for the industry. As legislators continue to fine-tune the bill, the focus remains on balancing innovation with market efficiency and regulatory clarity. The outcome of this legislative effort will undoubtedly shape the future of cryptocurrency regulation in the United States.
