- The FIT21 Act, crucial for cryptocurrency regulation, has successfully passed the U.S. House with strong bipartisan support.
- Despite its success in the House, the future of the FIT21 Act in the Senate remains uncertain, casting shadows over the long-term regulatory landscape for cryptocurrencies like Bitcoin and XRP.
The U.S. House of Representatives has recently passed the pivotal Financial Innovation and Technology for the 21st Century Act (FIT21), representing a significant legislative milestone in cryptocurrency regulation. Garnering a bipartisan vote of 279-136, the bill has drawn both support and opposition, including from President Biden and key Democratic figures.
Concurrently, recent updates from CNF have highlighted that Ripple (XRP) has gained further legitimacy in political circles, as evidenced by their acceptance as donations at Donald Trump’s 2024 campaign rallies.
Navigating the Regulatory Framework
According to a recent CNF YouTube video, the FIT21 bill seeks to designate the Commodity Futures Trading Commission (CFTC) as the primary regulator for digital assets. This move aims to establish a clear regulatory framework, distinguishing between cryptocurrencies as securities or commodities.
Despite the House’s approval, the bill’s progression through the Senate remains uncertain, as there is currently no similar legislation in place there. This situation underscores the ongoing global discourse on the necessity and impact of crypto regulation.
Market Reactions and Future Prospects
As detailed in today’s post shared in Yahoo News, the crypto industry celebrated a significant legislative victory this Wednesday. Here are the two main key points from the event:
- Passage of FIT21 Act: The U.S. House of Representatives approved the Financial Innovation and Technology for the 21st Century Act (FIT21) with a bipartisan vote of 279-136. This marks the first major crypto bill to clear a congressional chamber, setting a precedent for the regulation of digital assets markets. The bill aims to establish a comprehensive regulatory framework, appointing the Commodity Futures Trading Commission (CFTC) as the principal regulator for digital assets and detailing the distinctions between crypto tokens as securities or commodities.
- Uncertain Future in the Senate: Despite the success in the House, the future of the FIT21 Act in the U.S. Senate remains uncertain. There is no counterpart bill in the Senate, and the necessary committees have not shown the same level of commitment to crypto regulation as seen in the House. This legislative gap highlights the ongoing challenges and complexities in establishing cohesive crypto regulations across U.S. governing bodies.
In light of recent market data from Coin Market Cap, Ripple (XRP) has shown a notable increase, trading at $0.5292 with a 1.93% rise over the past week, signaling investor optimism amidst these regulatory developments and increased political engagement.
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