Democratic Party leaders, Maxine Waters and David Scott, have expressed strong opposition to two crypto bills proposed by Republicans in a leaked email. While they will not force House members to vote against the bills, they strongly encourage them to do so. The bills, if enacted, would benefit the crypto industry, but Waters and Scott argue that they disrupt established legal precedents and introduce unpredictability into the securities market. The email from the Democratic Whip’s office explains that one of the bills, the Financial Innovation and Technology for the 21st Century Act (FIT21), provides a safe harbor for entities to file an “intent to register” and avoid securities law regulations. Waters and Scott have published a “Dear Colleague” letter, referring to the bill as the “Not Fit for Purpose Act,” and highlighting concerns about its impact on state regulations, fiduciary obligations, and capital markets. Additionally, the email urges lawmakers to vote against a bill introduced by Majority Whip Tom Emmer that aims to prevent the Federal Reserve from issuing a central bank digital currency. Supporters of FIT21 include Coinbase, Kraken, and Andreessen Horowitz, who argue that it establishes a regulatory framework that is currently lacking in the United States.
