As Bitcoin’s value continues to soar and Wall Street shows increasing interest, the US crypto industry is anxiously awaiting a crucial vote in Washington. The Financial Innovation and Technology for the 21st Century Act (Fit21) is on the horizon, with the potential to either embrace digital assets or impose regulatory constraints on their growth.

Fit21: A Game-Changer for Crypto Regulation

The proposed Fit21 legislation aims to revolutionize how the US government oversees digital currencies. Currently, regulations are disjointed, with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) sharing regulatory authority.

If passed, Fit21 would designate the CFTC as the primary regulator for cryptocurrencies, offering clearer guidelines for the industry to adhere to. It also includes measures to safeguard consumers from risks and establish protocols for asset treatment during bankruptcy proceedings.

The Bitcoin industry is endorsing Fit21, considering it vital for the future of the US digital asset market. Absence of clear regulations has been a significant hurdle, prompting some companies to contemplate leaving the US. The Crypto Council for Innovation stresses the importance of embracing blockchain technology and digital assets to advance financial inclusion and national security.

Wall Street’s Impact on Crypto

Another element influencing the impending vote is the recent involvement of Wall Street giants in the crypto sector. Approval of Bitcoin exchange-traded funds (ETFs) earlier this year has paved the way for traditional investors to participate in Bitcoin without directly acquiring the cryptocurrency. However, concerns exist regarding the potential fees related to ETF custody, which some fear could impede innovation.

The Future of Bitcoin in the US Hangs in the Balance

With Bitcoin’s price surging and pressure mounting from industry players and Wall Street, the upcoming vote on Fit21 will be a defining moment for cryptocurrencies in the US. Its enactment could signify a new era of regulatory transparency, fostering industry growth. Conversely, rejection of the bill could cast a shadow of uncertainty over the crypto landscape, prompting companies to relocate and stifling innovation. With the vote drawing near, all attention is on Washington as lawmakers deliberate on embracing or restraining the crypto industry.

Image source: Getty Images, chart from TradingView