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The Financial Innovation and Technology for the 21st Century Act, or FIT21, is set for a vote in the U.S. House of Representatives by month’s end, intending to set a clearer regulatory landscape for digital assets. The act has guidelines to create a framework for the right way to manage cryptocurrencies, prescribes the formulation of roles for SEC and CFTC jurisdictions, and in the end, perhaps stabilizes the sector by drawing a difference between securities and commodities based on decentralization levels of blockchains.
Key bipartisan support in both House committees on Financial Services and Agriculture is a strong messaging toward the bill, irrespective of the substantial pushback from stakeholders in the industry, reportedly commenting on stringent decentralization criteria and regulatory overlaps. FIT21 also calls on protective measures for customers of cryptocurrency exchanges, including whatever would make their funds mandatorily separated and further transparency requirements.
The move is also seen as a response to increasing SEC aggressiveness with regulation, characterized by recent, high-profile lawsuits against Coinbase and Binance. The FIT21 Act has been hailed by industry advocates as the first vital baby step in mitigating regulatory confusion and fostering innovation in the U.S. digital asset space.
