In a landmark moment for the cryptocurrency industry, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) on Wednesday with a 279-136 vote. This significant policy win for the crypto sector saw considerable bipartisan support, with 71 Democrats joining 208 Republicans in favor of the bill. The FIT21 Act, which aims to establish comprehensive regulations for digital asset markets, represents the first major crypto bill to clear a chamber of Congress. The bill now moves to the Senate, where its future remains uncertain due to the lack of a counterpart bill and unclear support.

The legislation seeks to create a regulatory framework for the U.S. crypto markets, focusing on consumer protections and clearer definitions of digital assets as securities or commodities. It designates the Commodity Futures Trading Commission (CFTC) as the primary regulator of non-securities spot markets. Despite the bill’s passage, opposition remains strong. President Joe Biden and SEC Chair Gary Gensler oppose the bill, citing concerns over existing securities regulations. Rep. Maxine Waters (D-Calif.), a leading critic, argues the bill could enable crypto businesses to evade securities laws, rewarding what she considers illegal activities. The FIT21 Act’s journey through the legislative process highlights the ongoing debate over the future of cryptocurrency regulation in the United States.