Republican lawmaker Patrick McHenry has urged the Senate to pass the crypto-focused Financial Innovation and Technology for the 21st Century Act (FIT21). The congressman expects the bill to be passed before the November 5 elections.
In a statement to Bloomberg, McHenry said his stance should be considered a “wake up call” for the Senate, adding:
They need to stay focused on getting policy here and get it done before the election.
FIT21 a step closer to passing
On May 22, the U.S. House of Representatives approved FIT21 with 71 Democrats and 208 Republicans in favor.
The bill was presented by the House Financial Services Committee and the House Agriculture Committee.
It seeks to clarify the definition of crypto assets and clarifies the responsibilities of the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC).
Specifically, the bill grants the CFTC more jurisdiction over the crypto sector. The regulator is known for its more accommodating approach.
The bill would lay the foundation for crypto assets to be dubbed as commodities under the CFTC. However, the SEC would still have oversight over cryptocurrencies that aren’t sufficiently decentralized.
FIT21 was initially opposed by both the White House and SEC Chair Gary Gensler.
The White House released a notice stating that the bill lacked “sufficient protections.” Meanwhile, Gensler warned that it could create new regulatory gaps” and “undermine decades of precedent.”
McHenry added that the Senate was shocked over “the wide margin” with which FIT21 passed the house. Calling it an “important” bill, he said passing it with two-thirds vote was a “major statement.”
Crypto regulations a priority
Reiterating his plans to establish crypto regulations, he said:
We want to have a regulated form of digital assets and cryptocurrency here in the United States.
Chuck Schumer, the Democrat Majority Leader, is currently heading the Senate. The bill, currently in the hands of the Senate, needs a majority of 51 senators in favor to be passed.
McHenry said the Republicans will “pressure” the Senate “in the best way” to get it passed.
The U.S. Rep’s call to the Senate follows the regulator’s decision to join the House in overturning the Staff Accounting Bulletin No. 121 from the SEC.
SAB121 mandates that institutions holding crypto assets list them as liabilities. It must be noted that Schumer was among those who voted 60-38 to repeal the rule.
Schumer has also been in discussions about merging stablecoin regulations with other legislative measures under the SAFER Banking Act. However, McHenry is against idea.
The post U.S. Rep. Patrick McHenry urges Senate to pass the FIT21 crypto bill appeared first on Invezz
