McHenry advocates for FIT21 crypto bill’s approval by the Senate
The chairman of the House Financial Services Committee, Patrick McHenry, is urging the Senate to pass a crucial bill that aims to clarify cryptocurrency regulations before the upcoming U.S. presidential election in November.
On May 22, the U.S. House of Representatives approved the Financial Innovation and Technology for the 21st Century Act (FIT21) bill with a majority of 279 to 136, sending it to the Senate.
McHenry emphasized the overwhelming support from the House as a “wake-up call” for the Senate to take action. He urged them to stay focused on implementing the necessary policies before the election.
The bill proposes classifying most cryptocurrencies as commodities and placing them under the regulation of the Commodity Futures Trading Commission (CFTC). The CFTC is generally seen as more favorable towards cryptocurrencies compared to the Securities and Exchange Commission (SEC). However, the SEC would still have authority over cryptocurrencies that do not meet the criteria for decentralized control.
McHenry, who will be retiring from Congress in January, noted the shock from the Senate regarding the wide margin of approval in the House. He emphasized that passing the FIT21 bill with a two-thirds vote in the House during these divided times is a significant statement.
The Senate does not have a specific deadline for taking action on the FIT21 bill. It requires a majority vote of at least 51 senators to pass.
McHenry, who has been working with Democrat Maxine Waters on cryptocurrency and stablecoin legislation, indicated that any new regulations would likely need to be included in a larger legislative package to move forward in the Senate.
Critics argue that the crypto bill is too accommodating to the industry, while the Biden administration emphasizes the need to balance consumer protections with opportunities for crypto innovation.
McHenry also opposed Senate Banking Chairman Sherrod Brown’s suggestion to link a stablecoin package to a bipartisan marijuana banking bill, which is a priority for Schumer. He stated his opposition to the cannabis banking legislation and expressed that Republicans would do their best to pressure Schumer and the Senate to prioritize passing a crypto bill.
In conclusion, the House Financial Services Committee chairman is urging the Senate to pass the FIT21 bill to clarify cryptocurrency regulations before the November election. The bill classifies most cryptocurrencies as commodities and falls under the regulation of the CFTC. McHenry emphasizes the need for the Senate to act and highlights the support the bill received in the House.
