The U.S. House of Representatives approved the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill designed to regulate the cryptocurrency market.
The bipartisan vote on Wednesday resulted in 279 members, including 71 Democrats, endorsing the legislation, while 136 opposed it.
This bill, now proceeding to the Senate, could forge a new regulatory framework for digital assets, enhancing the Commodity Futures Trading Commission’s (CFTC) oversight.
It also introduces guidelines for the secondary market trading of digital commodities initially offered as investment contracts, in addition to addressing stablecoins and anti-money laundering protocols.
Despite the White House’s critique of the bill for lacking adequate consumer and investor safeguards, the administration has indicated a readiness to work towards a regulatory framework for digital assets.
FIT21’s passage signals a potential shift in the Congressional perspective on cryptocurrencies and their influence on the financial sector.
FIT21 has encountered opposition from SEC Chair Gary Gensler, who contends that the bill might lead to regulatory loopholes and compromise investor protection.
House Financial Services Committee Ranking Democrat Maxine Waters has also expressed concerns, arguing that the bill could overburden the CFTC and not provide sufficient regulatory authority.
This article was originally published by a finance.yahoo.com . Read the Original article here. .