The House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), marking a significant step in cryptocurrency regulation. Coinbase CEO Brian Armstrong hailed this victory, emphasizing the importance of clear and sensible crypto rules. With 71 Democrats voting in favor, surpassing expectations, the legislation now heads to the Senate.
Brian Armstrong Celebrates Historic FIT21 House Vote
According to Armstrong, this House approval of FIT21 is a “historic vote.” He believes this decision will establish clear rules to regulate cryptocurrency if it becomes law. Armstrong stressed that Americans want their representatives to protect their rights to use crypto. He added that they also seek clear rules to safeguard consumers, preventing the lack of clarity from being used by a few activists to target the industry unlawfully.
Brian Armstrong also highlighted the role of Stand With Crypto, a crypto advocacy group initiated by Coinbase. This group aims to support the push for sensible regulation in the crypto space. The House vote represents a rejection of efforts to undermine crypto technology, according to Armstrong. He expressed confidence that voters would remember this outcome.
The passage of FIT21 in the House is only the first step. The legislation now moves to the Senate for consideration. However, the Biden administration opposes the bill, arguing it lacks adequate protections for digital asset investors and consumers. This opposition could pose a challenge as the Senate debates the legislation.
Despite this, the White House has stated it will not issue a veto threat against FIT21 if it passes the House. This position leaves room for potential negotiation and compromise as the bill progresses. The Senate’s decision will be crucial in determining the future of crypto regulation in the United States.
Coinbase Pushes for Clear Crypto Regulations
In June 2023, the Securities and Exchange Commission (SEC) sued Coinbase for allegedly violating securities law. The lawsuit named 13 cryptocurrencies, including Solana and Cardano, as securities. This legal action followed the SEC’s issuance of a Wells notice against Coinbase in March of the same year.
Coinbase has consistently argued for clearer rules regarding digital asset regulation. In March 2024, the company asked an appeals court to direct the SEC to create a robust crypto regulatory framework. Coinbase contended that the SEC‘s avoidance of rulemaking violated the Administrative Procedures Act. The House’s approval of FIT21 aligns with Coinbase’s long-standing call for regulatory clarity.
Despite the bill’s passage, not all lawmakers are in favor. US House Ranking Member Maxine Waters criticized the bill, stating it is not fit for purpose and could create significant loopholes. Other Democrats also voiced opposition to the crypto bill, echoing concerns about potential gaps in investor protection.
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