The House Passes Pro-Crypto Bill FIT21 In Yet Another Political Win

Congress continues to shift pro-crypto with the passing of FIT21

By: Zack Guzman

May 22, 2024

Chalk up another loss for the anti-crypto army.

The House passed another pro-crypto bill on Wednesday with support from 71 Democrats to put more pressure on Gary Gensler's Securities and Exchange Commission.

FIT21, also known as H.R.4763 Financial Innovation and Technology for the 21st Century Act, was passed by a vote of 279 to 136 to open the door for a regulatory path for cryptocurrencies to exist under a new regime. The bill, which seeks to provide regulatory clarity for how digital assets might begin trading legally, wound up convincing even more Democrats to break with their ranks than last week's vote to rebuke the SEC's anti-crypto rules.

Building on the momentum of convincing Senate Majority Leader Chuck Schumer (D-NY) to break with the Biden-Gensler alliance, pro-crypto advocates flexed just how much they have educated politicians in Congress again. Even former Speaker of the House Nancy Pelosi joined 70 other Democrats in siding with House Republicans in voting for the bill.

Debate on the House floor lasted more than three hours as amendments were introduced before the eventual vote came. Despite best efforts from key Democrats, including Maxine Waters and Brad Sherman, the vote was overwhelming.

Earlier in the day, crypto advocate and founder of the Digital Chamber Perianne Boring had told Coinage if 50, or 60 Democrats sided with the bill that would be a win. In the end, the tally was more than triple the amount of support just last week.

"It’s incredible how quickly the tides can shift in crypto policy," Boring said, speculating before the vote that 50, 60, or 70 votes would "put absolutely tremendous support behind pushing this through the legislative process."

What remains to be seen is how quickly the Senate might move to take up the bill — and what kind of support it might garner. Importantly, ahead of the vote President Biden did not threaten a veto if FIT21 would eventually make its way to pass the Democrat-controlled Senate. He had previously threatened to veto the bill that rebuked the SEC for its anti-crypto rule SAB 121, but as of Wednesday had not followed through on that threat.

"We're urging all Americans to call the White House and encourage the President to sign the bill into law," she said. If the President vetoes the bill, Boring suggested, the administration might still pressure the SEC to withdraw the contested rule, or the issue could be settled through litigation.

Boring emphasized the importance of continued advocacy. "Businesses need regulatory clarity to invest and build in the U.S.," she stated. The House's pro-crypto stance must now be mirrored in the Senate, where a companion bill is yet to be introduced.

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