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Title: US House Passes FIT21 Crypto Bill With Bipartisan Support, Biden Does Not Threaten Veto
Source: [None]
URL Source: ... t-biden-does-not-threaten-veto
Published: May 22, 2024
Author: Tyler Durden
Post Date: 2024-05-22 22:14:07 by Horse
Keywords: None
Views: 31
Comments: 3

A majority of US House of Representatives members voted in favor of legislation to establish regulatory clarity over digital assets, CoinTelegraph reports.

In a 279 to 136 vote on May 22, House lawmakers approved H.R.4763, or the Financial Innovation and Technology for the 21st Century (FIT21) Act. If passed by the Senate and signed into law, the bill clarifies the roles the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have over digital assets. 71 Democrats joined with 208 Republicans to vote in favor of the bill.

“Unfortunately, our current regulatory framework is preventing digital assets’ innovation from reaching its full potential,” said Representative Patrick McHenry before the House vote. “The SEC and the CFTC are currently in a food fight for control of these asset classes.”

Maxine Waters, also speaking before the floor vote, said she intended to oppose the legislation. She claimed the FIT21 bill would send cryptocurrencies to a “regulatory no man’s land,” adding that the language would allow traditional finance firms to operate without SEC oversight.

“This [bill] is perhaps the worst, most harmful proposal I have seen in a long time,” said Representative Waters. “This bill would deregulate crypto and certain traditional securities to the extent that I and other experts have expressed serious concerns about this bill causing a potential market crash and recession.”

U.S. House Committee on Financial Services @FSCDems

Who benefits from the passage of the #NotFIT4PurposeAct:

✅Wealthy #crypto firms that have chosen not to register w/the @SECGov or otherwise comply w/the securities laws

Who stands to lose:

❌Ordinary investors trying to build wealth

Meanwhile, the White House is against the U.S. House of Representatives passing the FIT21 bill, but the president isn't threatening to veto it, in a positive sign for the crypto industry.

Biden's White House published a statement of administrative policy Wednesday saying the administration opposed the passage of the Financial Innovation and Technology for the 21st Century Act, citing concerns over a lack of investor protections should it make its way through Congress. The bill also suggested the White House would want to work with Congress on future legislation addressing the crypto markets, in contrast with previous statements from Securities and Exchange Commission Chair Gary Gensler, who has repeatedly said he does not believe the industry needs additional legislation specific to crypto.

"The Administration is eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, which will promote the responsible development of digital assets and payment innovation and help reinforce United States leadership in the global financial system," the statement said. "H.R. 4763 in its current form lacks sufficient protections for consumers and investors who engage in certain digital asset transactions."

This is the second statement of administrative policy the administration has published in recent weeks, after threatening a veto against a bill looking to overturn controversial SEC accounting guidance. That bill sailed through the House and Senate.

The statement came hours after the SEC's Gensler published his own opposing statement on the legislation, saying it would harm the regulator's efforts to police traditional capital markets as well as crypto markets.

FIT21 would redefine how securities issuers have to comply with existing federal law and Supreme Court precedent, the SEC chair said in his statement.

The bill's advocates say U.S. law doesn't allow for crypto companies to operate without the threat of civil litigation, a view Gensler described as these companies trying to get out of meeting disclosure and other compliance requirements for securities issuer.

The bill would create a new definition specific to digital assets, to identify when they're securities or digital commodities and whether the SEC or Commodity Futures Trading Commission should be the primary spot market regulator. The full House is set to take up the bill later Wednesday, with a vote scheduled for this afternoon.

The House is still set to discuss and vote on H.R. 5403, the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act, which would prohibit the Federal Reserve from issuing a digital dollar through intermediaries. Democratic Party leadership reportedly said on May 21 that it was not in favor of its members voting to pass the anti-CBDC bill or the FIT21 bill, but it would not whip against the legislation.

Crypto-related legislation and the SEC’s pending decision on a spot Ether exchange-traded fund comes as the United States moves deeper into an election year, with digital assets on many voters’ minds. President Joe Biden and former President Donald Trump, the presumptive candidates for the Democratic and Republican Parties in 2024, have agreed to two debates on June 27 and Sept. 10.

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#1. To: Pinguinite (#0)

So what do you think?

The Truth of 911 Shall Set You Free From The Lie

Horse  posted on  2024-05-22   22:15:18 ET  Reply   Trace   Private Reply  

#2. To: Horse (#1)

So what do you think?

Having read the article, I have absolutely no idea if this would be a good or bad law. I just see various sides giving opinions.

I will say that govs and banks are generally hostile to free market crypto because it undermines their power. Binance got so sick of the regs in place that the CEO agreed to plead guilty to criminal offenses just to end the whole clown show, and agreed to never do business within the US or with any US based business entites any more, and that even though it means some jail time for the multi billionaire CEO.

And reading through the alleged offenses committed by Binance, not a single one of them negatively impacted a single member of the American public. The only victim cited was the US government in failing to adhere to/comply with obscure gov regulations. So in quitting the US markets, Binance apparently decided that the world's financial system no longer revolved around the USA.

It is the proper role of government to prosecute actual fraud, and this should include fraud related to crypto. The government should aid those who fall victim to crypto related theft/fraud, and to do that, some crypto laws do need to be on the books. To the extent the above bill provides for that, I'd say it's a good bill. To the extent it instead may make crypto more difficult for individuals to acquire and utilize, I would say it's a bad bill.

Pinguinite  posted on  2024-05-23   2:30:44 ET  Reply   Trace   Private Reply  

#3. To: Pinguinite (#2)

In China they have eliminated paper currency. Now Chinese get electronic credits and if you do not tow the mark and walk the line, with a few keystrokes people can have their credits turned off. ;)

"When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke

BTP Holdings  posted on  2024-05-23   7:31:44 ET  Reply   Trace   Private Reply  

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