FIT21 Act faces opposition from White House
President Joe Biden’s administration has opted not to block the Financial Innovation and Technology for the 21st Century Act (FIT21), according to an official statement released Wednesday by the Executive Office of the President.
The statement underlined the administration’s stance opposing the current version of the FIT21 Act should it secure approval in the imminent House of Representatives vote. Central to their concerns is the potential impact of the FIT21 Act on the regulatory landscape governing digital assets in the United States. Despite this reservation, the administration conveyed a readiness to collaborate with lawmakers in shaping coherent cryptocurrency legislation.
“The Administration is keen to engage with Congress to establish a comprehensive and equitable regulatory framework for digital assets,” the statement affirmed.
The White House’s position on the FIT21 Act is detailed in a statement accessible on their website.
Additionally, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler echoed similar apprehensions about FIT21, aligning somewhat with the administration’s stance. Gensler emphasized the risks associated with digital assets and stressed the necessity of prioritizing investor protections over promoting business models centered on emerging technologies.
In contrast, members of the House Agriculture Committee from the Republican party expressed dissent towards Gensler’s viewpoint, highlighting bipartisan support gathering behind FIT21 ahead of the forthcoming vote.
Should the FIT21 Act secure passage in the House, its journey will continue to the U.S. Senate for further deliberation. Scott Mason, a senior policy advisor at Holland & Knight, commented that the support of prominent Democrats could play a pivotal role at this juncture.
“If it garners support from 50 or more Democrats, it sends a positive signal to the Senate,” Mason noted in private correspondence.
For more insights, sources suggest that Speaker of the House Nancy Pelosi may lean towards supporting the FIT21 crypto bill.
