The House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) on Wednesday, May 22, 2024, with bipartisan support. This legislation, which U.S. Congressman Josh Gottheimer played a key role in negotiating within the Financial Services Committee, aims to clarify regulations for digital assets, enhance consumer protections, and foster American leadership in the evolving field of innovative technologies.
FIT21 introduces vital investor-focused provisions designed to increase transparency and safeguard assets. The bill also aims to streamline regulatory oversight by clarifying and eliminating redundancy between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), the two primary financial technology regulators in the United States. The goal is to allow regulators to conduct oversight more efficiently.
A significant aspect of the bipartisan legislation is its focus on encouraging the cryptocurrency industry to invest in and create jobs within the United States, which has stronger consumer protection measures, rather than outsourcing opportunities overseas. The House approved the bill with a vote of 279-136.
Congressman Gottheimer emphasized the importance of the legislation, stating, “My state, New Jersey, ranks second nationwide in crypto ownership by proportion. The key is making sure we protect Americans who own it, and make sure we can recognize the economic and jobs potential it has to offer. For that, we need rules of the road to guide entrepreneurs, embrace innovators, and protect consumers. This bill offers protections that are FIT for the 21st century.”
