US Lawmakers Advance 'FIT for the 21st Century Act' to Establish Crypto Framework

U.S. lawmakers have advanced the Financial Innovation and Technology (FIT) for the 21st Century Act that establishes a regulatory framework for the crypto market. “Our bill establishes clear principles to ensure financial security and certainty as digital asset developers continue to innovate,” a lawmaker explained.

FIT for the 21st Century Act Advances

U.S. lawmakers have advanced the Financial Innovation and Technology (FIT) for the 21st Century Act (H.R. 4763). On Wednesday, the House Financial Services Committee passed the bill, followed by the House Committee on Agriculture approving it on Thursday. The FIT for the 21st Century Act establishes a digital asset framework to provide regulatory certainty to the crypto market.

Reps. French Hill (R-AR), chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion; Glenn “GT” Thompson (R-PA), chairman of the House Committee on Agriculture; and Dusty Johnson (R-SD), chairman of the Subcommittee on Commodity Markets, Digital Assets, and Rural Development introduced the bill on July 20. Its co-sponsors include Reps. Tom Emmer (R-MN) and Warren Davidson (R-OH).

Rep. Johnson explained: “The digital asset space is muddled with regulatory uncertainty, lack of authority, and a lacking framework for core operating principles.” He elaborated:

The crypto industry wants clarity and our collaborative bill gives both the CFTC and SEC a seat at the table. Our bill establishes clear principles to ensure financial security and certainty as digital asset developers continue to innovate.

The FIT for the 21st Century Act also contains a provision that provides for joint rulemakings between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Congressman Hill commented on Wednesday:

Congress has heeded the call for strong consumer protections and a functional regulatory framework, which is why I introduced my bill after working closely with key stakeholders, the Biden administration, and members from both sides of the aisle.

“The status quo is not solving problems, it’s not serving people, and it’s leaving America weaker by the day for failing to provide clarity in the digital assets market. We now have the opportunity to harness and embrace this next generation of technology in the United States,” said Congressman Davidson.