Support and Criticism Emerge for FIT21’s Regulatory Impact
Several stakeholders in the crypto space have supported FIT21, which is officially known as H. R. 4767. This bill is expected to provide much-needed clarity for the digital asset industry in terms of regulatory expectations by expanding the CFTC’s jurisdiction over cryptocurrencies.
However, some critics have argued that the bill may also erode the existing measures that seek to prevent volatility in the cryptocurrency market.
The email from the Democratic Whip’s office highlighted concerns that the bill could disrupt decades of legal precedent and create uncertainty in traditional securities markets.
Also, the bill contains provisions that permit entities to file ‘intent to register’ if certain criteria are met, which, in essence, effectively shields them from SEC rules and regulations until the SEC and CFTC finalize their rules.
Critics argue that this provision may actually reduce investor protections and allow for fraud and manipulation of markets.
SEC’s Enforcement Approach Sparks Debate
The American Securities and Exchange Commission (SEC) has been accused of using enforcement as a method of regulating cryptocurrencies.
In recent years the SEC has provided several enforcement actions against industry players. This has provoked some economic concerns that it may be driving crypto businesses overseas and stifling innovation.
Blockchain Association Requests FIT21 Vote
Cryptopolitan reported earlier that Blockchain Association penned a letter to Speaker of the House Mike Johnson(R-LA) and House Minority Leader Hakeem Jeffries(D-NY), requesting a FIT21 House floor vote.
The association explained that the bill would help U. S. operators understand the regulatory environment. Also, the Blockchain Association has urged for a pro-innovation and pro-consumer framework to protect the American marketplace and maintain U.S. supremacy in the crypto sphere.
