According to Odaily, Keegan Toci, Chief Investment Officer at Combine Capital, has expressed his controversial opinion that the FIT 21 should ideally be rejected by the Senate. Toci explained that the real regulatory victory for the crypto industry came when Congress voted to repeal SAB 121 and the SEC made concessions for spot Ethereum ETFs. These actions helped avoid illogical over-intervention.
However, Toci views FIT 21 differently. He argues that spot commodities and currency markets are largely unregulated, and the role of the CFTC is to regulate derivatives related to these markets, not spot commodities. Yet, the FIT 21 proposal invites the CFTC to unnecessarily expand their regulatory scope. This is concerning as the CFTC is a resource-poor agency with a poor track record in crypto enforcement actions. Meanwhile, the SEC still retains regulatory power over certain digital assets.
Furthermore, Toci pointed out that the FIT 21 bill has significant loopholes in its coverage of DeFi, leading to many regulatory uncertainties. He added that while it is a positive sign that both parties agree on the need to build a new regulatory framework for cryptocurrencies, especially with 71 Democrats choosing to cross party lines to vote in favor, FIT 21 is not the framework they had in mind. Therefore, if it fails to pass the Senate vote, there is no need for concern. It was previously reported that the US House of Representatives had voted to pass the FIT 21 bill.