Former House Speaker Nancy Pelosi is reportedly backing the Financial Innovation and Technology for the 21st Century Act (FIT21), a significant crypto regulation bill spearheaded by Republicans.
Pelosi’s Potential Support for FIT21
Sources close to Pelosi indicate that she may support the FIT21 bill, which is poised for a vote on May 22. This stance places her at odds with prominent Democrats such as Maxine Waters and David Scott, who have voiced their opposition. However, a leaked email dated May 20 from Democratic Party leaders suggests that House Democrats will not be pressured to vote against the bill.
Bipartisan Effort to Clarify Crypto Regulations
The FIT21 bill aims to provide much-needed clarity on cryptocurrency regulations in the United States, addressing ongoing issues of market oversight and consumer protection. The legislation seeks to delineate the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in regulating digital assets.
Redefining SEC Jurisdiction
A key proposal in the bill is the revision of the SEC’s jurisdiction over cryptocurrencies. This would involve updating the Howey test, a 90-year-old standard used to determine whether an asset qualifies as a security, to better accommodate the unique attributes of digital assets. This change aims to create a clearer distinction between digital commodities and securities.
Industry Reception and Regulatory Impact
The crypto industry has largely welcomed the FIT21 bill for its potential to streamline the regulatory environment, primarily by shifting oversight to the CFTC. The CFTC is perceived to have a more lenient regulatory approach compared to the SEC, a preference long advocated by the industry.
Mark Hays, a senior policy analyst on fintech with Americans for Financial Reform, noted that the proposed changes align with the industry’s desire for more accommodating regulation.
Democratic Support and Bipartisan Appeal
As of now, at least eight House Democrats have publicly declared their support for the bill. These include Representatives Wiley Nickel (D-N.C.), Yadira Caraveo (D-Colo.), Jim Himes (D-Conn.), Jasmine Crockett (D-Tex.), Ritchie Torres (D-N.Y.), Darren Soto (D-Fla.), Josh Gottheimer (D-N.J.), and Don Davis (D-N.C.). They emphasize that the bill “should not be a partisan issue” and view it as a critical opportunity to regulate the cryptocurrency market effectively.
Representative Nickel has urged lawmakers to support the bill’s passage, citing the need to prevent incidents like the collapse of FTX.
Conclusion
The FIT21 bill represents a significant step towards regulatory clarity in the cryptocurrency space. Nancy Pelosi’s reported support underscores the bipartisan nature of this effort, highlighting its importance for the future of digital asset regulation in the U.S. The upcoming vote will be a pivotal moment for the bill’s advancement and the broader regulatory landscape.
Powered by Crypto Expert BD
Follow us on Twitter: https://x.com/CryptoExpert_BD
Join our Telegram channel: https://t.me/CryptoExpert_BD
