The US House will review and consider a new bill that will provide “robust consumer protections and regulatory clarity for digital asset markets.” The House Committee on Rules publicly noticed its intent to consider the Financial Innovation and Technology for the 21st Century (FIT21) Act on Friday.
The proposal is a significant first step towards the government providing clearer regulation on cryptocurrency and digital assets. According to a statement from the House, FIT21 provides the robust, time-tested consumer protections and regulatory certainty necessary to allow the digital asset ecosystem to flourish in the United States.
Source: USDA
“For far too long, the U.S. digital asset ecosystem has been plagued by regulatory uncertainty that has stifled innovation and left consumers unprotected,” said House Financial Services Committee Chairman Patrick McHenry (NC-10). “This comprehensive market structure legislation—the Financial Innovation and Technology for the 21st Century Act—is the culmination of years of bipartisan efforts to finally provide clarity.”
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The digital assets bill was first proposed to the House in July 2023 by Chairman Glenn Thompson; Rep. French Hill; Rep. Dusty Johnson; Majority Whip Tom Emmer; and Rep. Warren Davidson. According to the House, the legislation provides the Commodity Futures Trading Commission (CFTC) with new jurisdiction over digital commodities.
Furthermore, it clarifies the SEC’s jurisdiction over digital assets offered as part of an investment contract. FIT21 will also protect consumers by strengthening transparency and accountability with market participants, as well as strengthen the market by protecting digital asset projects.