An important bill concerning the regulation of cryptocurrencies, known as the Financial Innovation and Technology for the 21st Century Act (FIT21) Crypto bill, has been a topic of significant development. However, United States Representative Brad Sherman has expressed worries about the potential implications of this bill on the digital assets industry.
The bill, which received support from a majority of the US House of Representatives, saw 279 members voting in favor of its approach, while 139 voted against it.
Democrats, led by Speaker of the House Nancy Pelosi, contributed 71 votes to the total in favor of the bill, while the remaining 208 votes were from Republicans. Additionally, a memo supporting the bill, which was crafted by Republicans, was endorsed by 8 House Democrats, showcasing a bipartisan consensus regarding the bill.
Brad Sherman’s Critique of FIT21 Crypto Bill
The FIT21 bill was passed by the House of Representatives on May 22, signaling a significant advancement in setting forth clear regulations for the US cryptocurrency sector.
Despite receiving substantial backing, the bill is pending final approval. If passed by the Senate and signed into law, it will delineate the authority of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in overseeing crypto assets.
The bill aims to grant both regulatory bodies joint jurisdiction in supervising the digital assets realm, distinguishing between securities and commodities, and safeguarding investors and consumers.
Representative Patrick McHenry highlighted the current regulatory conflicts hindering digital asset innovation, citing the jurisdictional struggle between the SEC and the CFTC.
While the bill holds promise for the crypto industry, Brad Sherman has raised concerns about its potential adverse effects on the US. He believes the bill would weaken the SEC and potentially relax regulations on cryptocurrencies, eroding the securities regulations vital for the US economy.
Impact on US Dollar and Illicit Activities
Looking ahead, Sherman anticipates that the rise of cryptocurrencies could introduce a new form of currency outside US tax regulations. This could pose challenges in enforcing laws against illegal use of these assets by entities such as drug traffickers and others.
Furthermore, Sherman foresees cryptocurrencies, particularly Bitcoin, emerging as formidable competitors to the US Dollar as a preferred store of value.
