Original article by: Avichal - Electric ϟ Capital
Original translation: TechFlow
The US House of Representatives votes on FIT 21. Biden just said he wants comprehensive cryptocurrency regulations. So,
What is FIT 21?
Why is this bill important?
What does FIT 21 reveal about the changing dynamics of political alliances and power in the United States?
What is FIT 21?
FIT 21, the 21st Century Financial Innovation and Technology Act , is the first bill that attempts to comprehensively define how the United States should regulate the crypto market.
There are several key areas and provisions of FIT 21:
Delineating the jurisdiction of the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC)
Providing consumer protection around transparency and disclosure by promoters and endorsers
Ban institutions from preventing people from using cryptocurrencies
Ask the Treasury to study stablecoins
FIT 21 attempted to define the terminology around decentralized systems and when a network is decentralized enough to no longer be a security. It introduced a process to certify that an asset is decentralized enough to be labeled a commodity. This was a huge breakthrough.
The SEC must review the petition and respond within 90 days. If the SEC determines that an asset is operated without a controlling entity, then the asset is a commodity and the CFTC has jurisdiction.
For SEC skeptics, this isn’t ideal. But having clear rules is a big step forward.
So why is FIT 21 important?
The first thing I’ve learned after three and a half years of doing this is that political and legislative progress is often incremental and imperfect, but there are occasional major breakthroughs.
When you can make something you want into real law, take it.
FIT 21 isnt perfect, but it brings us one step closer. Not only did we win a new battle, we gained points on the chessboard. We proved to the world that we know how to get things done. And we may not get another chance like this for several years.
FIT 21 does not have a corresponding bill in the Senate. Therefore, it will not become law yet.
Todays vote was performative, but 80% of it was performed by those in power.
What does FIT 21 reveal about the changing dynamics of political alliances and power in the United States?
But who is performing? For whom? What do their performances tell us? These performances will tell you where the world is going.
This poll tells us:
Republicans have been concerned about this issue since the beginning
Democrats fear losing votes, money, and this issue to Republicans
The Democratic Party is breaking away from Elizabeth Warren
The president is breaking with Warren
The centers of power are shifting, and crypto is winning.
@PatrickMcHenry , @RepFrenchHill @GOPMajorityWhip and others have been advocating for crypto for Republicans for years. It is a great validation of their strategy that 50 million US crypto holders are well-prepared for a power transition.
If you look at whose opinions have changed in the last 6 months, its the moderate Democrats. Similar to the Democrats who voted to overturn SAB 121 @RepRitchie , @RepMoulton, @RepSlotkin we now have people like Jim Himes and @RoKhanna voting with their Republican colleagues @RepWileyNickel .
A year ago, this would have likely been vetoed by the president in a hurry. Today, the White House wants to help clarify cryptocurrency regulations and won’t veto them.
A 180-degree turn of attitude. The White House staff brought their colleagues here.
What does all this mean? What does it signal?
This shows that moderate Democrats have realized the importance of cryptocurrencies.
There are enough people here to sway the election.
There is enough money to help with the election.
The Democrats are losing these voters.
Elizabeth Warren was at the center of the tech and cryptocurrency regulation movement. She has lost a lot of power as she cost the party votes and donations ahead of 2024. The Democratic Party has now signaled that they don’t want to follow Warren into oblivion.
In 2025, the Senate will appoint new commissioners at the SEC, CFTC, FDA, FTC, etc. If Warren has power, expect someone like Gensler. If Warren doesnt have power, well also get someone like @HesterPeirce (Note: The author means that the influence of cryptocurrency in American politics will continue to deepen anyway)
