The Blockchain Association is urging a vote on the Financial Innovation and Technology for the 21st Century Act (FIT21), also known as H.R. 4763. In a letter addressed to U.S. House Speaker Mike Johnson and Minority Leader Hakeem Jeffries, the association stressed the need for regulatory clarity in the U.S. digital asset industry.
Notable industry players, including Ripple, Kraken, and Circle, have already endorsed the Blockchain Association’s letter. The letter highlights the lack of targeted market regulations in the blockchain and digital asset sector since the inception of Bitcoin in 2009.
Criticism has been directed at U.S. regulators, particularly the Securities and Exchange Commission (SEC), for their approach to crypto regulation. The SEC’s enforcement-based regulation has been seen as overly strict and anti-crypto, potentially pushing American companies to relocate and inhibiting technological progress in the country.
The Blockchain Association’s letter argues that the absence of regulatory clarity hampers innovation and damages America’s reputation in the technology world. It suggests that if FIT21 is approved, the Commodities Futures Trading Commission (CFTC) would gain greater authority over digital asset regulation, providing enhanced legal protection for crypto users globally.
The push for a House vote on FIT21 aligns with the growing momentum for crypto legislation in the U.S. Congress. This follows the approval of a resolution that could eliminate the SEC’s controversial accounting bulletin, SAB121. President Joe Biden has stated his intention to veto any attempt to reject SAB121, citing concerns over financial instability and market uncertainty.
However, President Biden’s stance may change if there is strong bipartisan support against the SEC’s crypto guidance. Political considerations, particularly in light of the upcoming 2024 U.S. elections, could influence lawmakers’ decisions on whether to support or oppose the Financial Innovation and Technology Act of 2021 (FIT21).
Overall, the Blockchain Association is calling for regulatory clarity and the passage of FIT21 to foster innovation and establish a favorable environment for the U.S. digital asset industry.