According to reports, on the second day of the passage of the Financial Innovation and Technology for the 21st Century Act (known as Fit21) by the House Financial Services Committee, the House Agriculture Committee also approved the bill. Fit21, which is considered the most significant digital asset legislation proposed by Congress so far, was jointly drafted by Republican members of the Agriculture and Financial Services Committees. The bill aims to establish a comprehensive regulatory framework for digital assets, granting jurisdiction over digital commodities to the Commodity Futures Trading Commission (CFTC), clarifying the jurisdiction of the Securities and Exchange Commission (SEC), and establishing processes for the sale of digital assets that were previously considered securities as commodities.
It is reported that this legislation will soon be transferred to the full House for a vote. However, there is still uncertainty in the Senate, and the SEC seems to have reservations about this bill.
During the hearing, Patrick McHenry, the Chairman of the House Financial Services Committee, stated that the Financial Innovation and Technology for the 21st Century Act would clarify how the Howey test, established by the Supreme Court, applies to digital assets, with a focus on "decentralization" and "functionality." Specifically, the bill describes how digital assets can be offered as part of a securities contract without necessarily being securities themselves.
However, this bill has also faced opposition from several members of Congress. Representative Maxine Waters (D-CA) criticized the bill as merely a "wish list" for the cryptocurrency industry, stating that it is not necessary to invent new regulatory structures just because cryptocurrency companies refuse to comply with traffic rules. She argued that publicly traded companies could abuse this bill by reissuing their securities as blockchain tokens, enabling them to be regulated by the CFTC instead of the SEC.
Nonetheless, the cryptocurrency industry urgently needs clearer legal regulations, and true investor protection requires the establishment of a sound legal framework that exchanges can comply with, rather than "pushing" the industry away from the United States. The passage of the Financial Innovation and Technology for the 21st Century Act undoubtedly marks an important milestone for the development of the cryptocurrency industry. For example, the cryptocurrency market has long suffered from issues of information asymmetry and lack of transparency, which are expected to be effectively improved with the passage of this bill.
In conclusion, the passage of the Financial Innovation and Technology for the 21st Century Act is undoubtedly positive for the cryptocurrency industry. It will provide stronger support and protection for its development, promote innovation and application in the financial sector, and provide investors with a safer, fairer, and more transparent trading environment.
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