The Financial Innovation and Technology for the 21st Century Act (IT21) marks the first instance of a major cryptocurrency-related bill being approved. The matter will now be sent to the U.S. Senate.
It is worth noting that the U.S. lags behind other global jurisdictions in cryptocurrency regulation. The bill was supported by 71 Democrats and 208 Republicans, with 3 Republicans and 133 Democrats voting against it.
President Joe Biden opposed the bill, although he did not state that he would veto it, as he had done previously when Congress attempted to overturn the SEC’s efforts to establish cryptocurrency accounting policies.
SEC Chairman Gary Gensler also opposed the bill, arguing that it is unnecessary and threatens existing securities regulations.
The new legislation, initiated by House Republicans, will establish a regulatory framework for U.S. cryptocurrency markets, consumer protection, designate the Commodity Futures Trading Commission (CFTC) as the primary regulator of digital assets, and oversee spot markets.
Waters claims that the bill is aimed at allowing the crypto business to avoid accountability. He believes that billions of dollars have already been made from illegal issuance, and now Republicans are proposing to legalize it.
Before Wednesday’s daytime vote, the House of Representatives discussed several amendments to the bill. Casar’s amendment to change the crowdfunding exemption from $75 million to $5 million was rejected, while the remaining amendments were adopted.