The House Financial Services Committee is all set to construct a new regulatory framework and crypto products in Washington. The voting on the new legislation, Financial Innovation and Technology for the 21st Century Act (FIT21) is scheduled for Wednesday, May 22.
What is Expected from the New Regulatory Framework?
Washington’s crypto community hops an effective regulatory framework this week, as The House Financial Services Committee is planning new legislation to ensure consumer protections. The voting is planned for Wednesday.
The Financial Service GOP announced the same on X to support the financial innovation and technology for the 21st Century Act.
️ To date, the U.S. digital asset ecosystem has been mired by uncertainty and regulation by enforcement.
— Financial Services GOP (@FinancialCmte) May 21, 2024
Congress has the chance to provide the robust consumer protections and regulatory clarity needed to foster innovation here in America by advancing #FIT21.
pic.twitter.com/EuixOAYNae
The FIT21 is a significant step toward crypto regulatory clarity and offers robust, time-tested consumer protections and regulatory certainty. The new legislation would develop the Commodity Futures Trading Commission (CFTC) as a leading regulator of cryptocurrency.
Furthermore, the new regulations will also safeguard consumers and their funds from a catastrophic collapse like FTX in 2022.
In the same way, the Central Bank Digital Currency (CBDC) anti-surveillance State Act, will restrict the Federal Reserve’s CDBC issuance unless it is permissionless, open, and private.
In simple terms, the set of principles will help good actors innovate responsibly, holding regulatory clarity. Also, there would be transparency in what the CFTC and the Securities of Exchange Commission (SEC) would regulate.
Is The New Regulatory Framework A Green Light For Spot Ether ETF?
The SEC indulged in Spot Ether ETF decisions and requested all the applicants for 19b-4 filing. James Seyffart, crypto analyst revealed on X that 5 applicants submitted their filings via CBOE.
UPDATE: It's happening. We have at least 5 of the potential #Ethereum ETF issuers that have submitted their Amended 19b-4's in the last ~25 min.
— James Seyffart (@JSeyff) May 21, 2024
Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, & Franklin all submitted via CBOE. pic.twitter.com/pHGt8iRWi8
As per the tweet, Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, & Franklin submitted their filings and awaiting S-1 approvals. Also, the activeness of the SEC on the ETF decision influenced the ETH price.
ETH Performance Amid ETF Approval Delays
At press time, ETH was trading at $3,742.11, after 1.13% in a day with a market cap of $448,571,466,161. In the past seven days, ETH showcased a bullish trend, surging to 29.11%.
The approval of the spot Ether ETF would enhance investors’ investment in ETH without actually making a purchase.
