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U.S. House Passes “FIT21” Crypto Bill

The U.S. House just approved its first major crypto legislation
William M. Peaster William M. Peaster May 22, 20242 min read
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U.S. House Passes “FIT21” Crypto Bill

The U.S. House of Representatives just passed the Financial Innovation and Technology for the 21st Century Act (FIT21), marking a significant milestone in crypto regulation.

What's the scoop?

  • The House voted 279-136 to approve the bill, with 71 Democrats joining 208 Republicans in favor.
  • FIT21 aims to regulate the digital assets market and would empower the Commodity Futures Trading Commission (CFTC) as a key regulator alongside the Securities and Exchange Commission (SEC). The bill also includes consumer protections and provisions for stablecoins and anti-money laundering processes.
  • High-profile Democrats, including former House Speaker Nancy Pelosi, supported the bill, highlighting the rising bipartisan tide around crypto regulation. 
  • Several amendments were considered, with only those by Reps. Brittany Pettersen (D-Colo.) and Ralph Norman (R-S.C.) passing. Pettersen's amendment expands the Bank Secrecy Act to digital assets, while Norman's requires a study on foreign-owned digital asset businesses.

Bankless take:

The FIT21 legislation now moves to the U.S. Senate, where its future is uncertain due to a lack of a companion bill and unclear support. Even if FIT21 were to pass the upper house of Congress, it would still be subject to a potential veto by President Biden, who has been critical of the bill but hasn’t confirmed any veto plans yet. 

Whatever happens, it’s the first major non-resolution crypto bill approved by the U.S. House, marking a big political win for the crypto industry. The passing of the bill’s first hurdle coincides with a seemingly thawing regulatory environment in the U.S., as Ethereum ETFs seem on the verge of approval and the Senate recently repealed a SEC-backed crypto rule

If FIT21 does go on to succeed in the Senate, a new era of more sensible American crypto regulation would be decidedly within reach.

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William M. Peaster

Written by William M. Peaster

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William M. Peaster, Senior Writer, has been with Bankless since January 2021. Immersed in Ethereum since 2017, he writes the Metaversal newsletter on the onchain frontier, covering everything from AI projects to crypto games, as the team’s lead NFT analyst. With a background in creative writing, he writes fiction and publishes art on Ethereum in his free time. He lives in Washington.

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