FIT21 Bill To Become A Regulatory Framework For Digital Assets

• 1 FIT21 bill got the 65% of vote in favor to frame the bill into law.
• 2 The bill is aimed to increase consumer protection, regulatory clarity and better support to innovation.
• 3 It is a significant achievement that will promote the growth of digital asset space and ease the operations for American population being involved in digital asset space.

On May 21, Patrick McHenry, the chairman of the House Financial Services Committee, led Republicans on the House floor as lawmakers voted for the passing of the Financial Innovation and Technology Act for the 21st Century (FIT21) bill.

“Today, Congress will establish a new high water mark for digital asset policy,” said McHenry in his opening remarks while announcing the successful passage of the bill.

It is a significant move towards building a robust regulatory framework for digital assets. This legislative effort aims to firm the United States’ position as a global leader in technological innovation, specifically within the rapidly evolving digital ecosystem.

The voting was executed on May 21 in the parliament, including President Biden. Upon receiving the majority vote in favor of the bill, it is about to become a rule soon. The voting results expressed a strong favor for the bill; out of 218 members of the Republican Party, 208 voted in favor, 3 voted against and the remaining were not valid. 

Similarly, out of 213 members of the Democratic Party, 70 voted in favor, 133 in opposition, and the remaining invalid votes. In total, 278 votes were cast in favor of the bill and 136 were in opposition. Thus, after getting the majority of votes, the bill was passed.

McHenry also showed his strong support for the bill, stating, “I urge my colleagues to support consumer protection, innovation, and American leaders in voting for FIT21”.

How will the Bill Make a Difference?

The bill is the result of the joint efforts of the Financial Service Committee and Agriculture Committee, which began in July 2023. They have not framed this bill overnight and put in their strong dedication to build something that can improve the functioning of digital assets.

Under the leadership of Gary Gensler, the U.S. digital asset has been surrounded by uncertainty and regulation enforcement. The initial proposal of the bill clearly depicts the objective and aim of the bill, clearly highlighted by the various members, addressing the required needs of consumer protection, supporting innovation and providing clear regulations.

SEC and CFTC were also facing problems clearing and defining their areas of control, this bill is designed to make it clear for consumers and the board. 

As the chairperson highlights, “FIT21 fixes this by creating a regulatory framework that will provide clear rules of the road and strong guardrails for Americans engaging with the digital asset ecosystem.”
Moreover, the FIT21 will ensure effortless operations for the mere 20% of the American population who are dealing with and engaging in the digital asset ecosystem by enhancing security and consumer protection.

Andrew Smith

Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages ​​and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.