Rep. Patrick McHenry, a prominent Republican lawmaker, has urged the Senate to pass the Financial Innovation and Technology for the 21st Century Act (FIT21) before the upcoming presidential election. This plea follows the bill's substantial approval in the House, where it passed with a notable bipartisan majority on May 22. The FIT21 bill aims to classify most cryptocurrencies as commodities, placing them under the regulatory purview of the Commodity Futures Trading Commission (CFTC).
McHenry emphasized the importance of this legislation in a recent interview with Bloomberg's Balance of Power, stating, "This should be a wake-up call for the Senate that they need to get on with this." He stressed the necessity for timely policy action, suggesting that the Senate should prioritize the bill to ensure a regulated framework for digital assets and cryptocurrencies in the United States.
The bill's passage in the House has surprised many in the Senate, especially given the strong bipartisan support it received. McHenry highlighted the significance of this achievement, noting that passing such a critical bill with a two-thirds majority in the current politically divided climate is a major statement.
However, the bill faces opposition from the Securities and Exchange Commission (SEC) and President Joe Biden. While the CFTC is viewed more favorably by the crypto industry, the SEC would retain authority over cryptocurrencies that are not sufficiently decentralized.
McHenry, who is set to retire from Congress in January, has been collaborating with Democratic Rep. Maxine Waters to pass a stablecoin bill for nearly two years. He acknowledged that this effort might require attaching the bill to a larger piece of legislation to navigate through the Senate.
The Senate, led by Democrat Majority Leader Chuck Schumer, does not have a set timeline to act on FIT21. A simple majority of 51 senators is required for the bill to pass. McHenry has vowed to apply pressure on Schumer and the Senate to prioritize the crypto bill, indicating that Republican efforts will continue to push for legislative progress.
With the U.S. presidential elections scheduled for November 5, the urgency to pass the FIT21 bill is escalating. McHenry's call to action underscores the need for a cohesive regulatory framework to support the growth and stability of the cryptocurrency market in the United States.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
