The U.S. House of Representatives voted 279 to 136 on May 22 to pass the Financial Innovation and Technology for the 21st Century Act (FIT21), a landmark bipartisan bill that establishes a regulatory framework for digital assets. The legislation, introduced by Representatives French Hill, Glenn 'GT' Thompson, Dusty Johnson, Tom Emmer, Warren Davidson, and co-sponsored by Patrick McHenry, represents the first time a chamber of Congress has approved a comprehensive crypto regulatory bill.
'A Historic Day for American Consumers, Investors, and Innovators'
“Today is a historic day for American consumers, investors, and innovators,” said Representative French Hill after the vote. “I applaud the House’s bipartisan passage of FIT21, which crafts a ‘fit for purpose’ regulatory framework for digital assets that protects consumers and investors while securing the United States as a leader in blockchain innovation.” Hill stressed that the bipartisan passage signals consumer protection and American innovation are priorities for lawmakers on both sides of the aisle. “FIT21 is the first legislation of its kind in United States history to pass a chamber of Congress, and I remain committed to pushing this legislation forward until it becomes law,” he added.
Biden and Gensler Opposition Fails to Stop the Bill
Despite public opposition from President Joe Biden and SEC Chair Gary Gensler — Gensler issued a statement against the bill, and the White House released a statement opposing it ahead of the vote — the House still passed the bill with a comfortable bipartisan majority. The White House expressed willingness to work with Congress on a balanced crypto regulatory framework, hinting at possible future negotiations. Gensler has long argued that most crypto assets should be regulated as securities under existing laws, while FIT21 creates a new system splitting jurisdiction between the CFTC and SEC for digital commodities and securities.
Key Provisions and Industry Impact
The FIT21 Act includes provisions to clarify whether a digital asset is a security or commodity, grant the Commodity Futures Trading Commission (CFTC) primary oversight of digital commodities, require crypto trading platforms to register with the SEC and disclose more information, and establish consumer protection mechanisms. Industry observers believe the bill will provide clearer compliance pathways for U.S. crypto businesses, potentially attracting more traditional capital into the ecosystem. However, the bill still needs to pass the Senate and be signed by the president to become law, and given the Biden administration's opposition, its future remains uncertain.
Reactions and Outlook
The crypto industry broadly welcomed the passage, with executives from Coinbase, Circle, and others celebrating on social media. Critics warn the bill could weaken SEC enforcement powers and increase investor risk. In the coming months, FIT21 will face intense debate and voting in the Senate. With the 2024 presidential election approaching, crypto regulation has become a key battleground issue for both parties.