FIT21 has reached a significant milestone. The House has cleared the way for the legislation to climb the ladder rather than move to the Senate and President to become law officially. What lies next is a phase of optimism and clarity for the crypto market. Biden’s opposition to the bill suggests he may not sign it. Gary Gensler followed suit, asserting that he has dedicated a decade to advancing the crypto market.
If passed as a law, the Financial Innovation and Technology for the 21st Century Act (FIT21) will become the first major regulatory framework for cryptocurrencies in the United States. Analysts have applauded the move for providing clarity on cryptocurrency issuance, relevant declarations, and trading procedures. In other words, it lays down every possible answer to the question that one might have about the workings of the crypto market.
The legislation received 279–136 votes in favor. Those who supported it emphasized the dire need for rules of the road. They have also praised it, saying that it is well-reasoned, bipartisan, and thoughtful.
This is a significant move by the current government, following Donald Trump’s statement at an event that Joe Biden and his government have limited knowledge of cryptocurrencies. This was during an event for Trump NFT holders, wherein he even opened the window of acceptance for Bitcoin and other tokens as donations to his campaign.
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Assuming that the move is political, crypto enthusiasts will eventually see through the flaws (if any) and decide to swing the other way.
Until then, the crypto market will wait to respond to the situation. Clarity about trades, purchases, and issuance marks a significant step forward. It grants the SEC and CFTC almost equal roles in regulating and governing the space, eliminating any confusion regarding the market’s control.
There is no impact on BTC and ETH at the moment. BTC is down by 3.195 in the last 24 hours, listed at $67,281.52 at the time of writing this article. It is poised to surpass the milestone of $84,000 in the next couple of weeks. ETH may have reacted to the speculation about its ETF approval. During the same time period, the token is down 3.12%.
There are positive vibes that one application may get a green light from the agency. If so, it will be the second such ETF in the market after Bitcoin.
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FIT21 could further help accelerate such developments. For instance, the fate of Solana ETF is hanging by a thin thread. It lacks a futures contract, restricting its chances of getting an ETF approved anytime soon. FIT21 could change that and fuel the pace.
