Author: Kristin Smith, CoinDesk; Translated by: Deng Tong, Golden Finance
The passage of the Financial Innovation and Technology Act for the 21st Century (FIT21) by the U.S. House of Representatives is a major milestone for the digital asset industry. As the head of the Blockchain Association, the leading trade organization representing the industry, I am pleased to see strong bipartisan support for attempts to establish clear rules that are designed to enable responsible innovation while protecting consumers.
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A quick overview of the main contents of the latest US encryption bill FIT21
《a16z: Detailed explanation of FIT21 bill and why it is important to the crypto industry》
The regulatory environment for digital assets in the U.S. has long been an untenable, chaotic landscape. Different federal agencies have asserted conflicting jurisdictions, causing market confusion and uncertainty. Meanwhile, the U.S. Securities and Exchange Commission (SEC) has taken advantage of this unstable situation to increase intimidation and enforcement efforts, threatening the viability of cryptocurrencies in the United States.
This leads to further uncertainty, costly legal battles and the risk that the U.S. falls behind other regions, such as the European Union, in fostering a vibrant local cryptocurrency industry.
The status quo of cryptocurrency regulation in the United States simply isn’t working for anyone—not for companies developing innovative products and services, not for investors, and certainly not for consumers. It’s time for Congress to step in, reclaim its rightful place as the engine of economic policymaking, and draft a modern, fit-for-purpose regulatory framework.
While the legislation should be further refined when it reaches the Senate, FIT21 represents a significant step in the right direction. It recognizes the fundamental promise of cryptocurrency and blockchain technology and strives to promote innovation while protecting consumers. This legislative approach that balances these key priorities is what our industry has been advocating for. This is also what consumers demand.
We applaud House Financial Services Committee Chairman Patrick McHenry (R-N.C.) and House Agriculture Committee Chairman Glenn Thompson (R-PA) for leading this legislative effort. They have invested months of work and continued engagement with industry stakeholders, including Blockchain Association member companies, to understand the key issues and try to establish the right framework.
While FIT21 is not perfect—no bill is—we will continue to advocate for productive change. Today’s vote represents undeniable progress on the path to a sensible policy environment that brings transparency to digital assets in the United States. After a difficult 2022, it’s gratifying to see elected leaders supporting this critical technology, and more and more Americans want their government to support, or at least not hinder, it.
The House vote reaffirms the growing political momentum for cryptocurrency, following recent positive developments in Congress such as the bipartisan repeal of SAB121, the SEC’s misleading and illegal accounting guidance. A recent poll shows that a growing faction of American voters want to elect politicians who understand cryptocurrency and are willing to respect and support the technology’s development in the United States.
Cryptocurrency is likely to become a hot-button issue in the upcoming presidential campaign, with former President Trump recently embracing the technology and making a clear case for support.
As FIT21 moves to the Senate floor, the Blockchain Association and our members will continue to engage constructively to advocate for smart policies that promote responsible innovation and, most importantly, protect consumers. We express our sincere gratitude to House leaders for leading this watershed moment—and we look forward to maintaining cryptocurrency’s extraordinary political momentum in the months ahead.
