The Financial Innovation and Technology for the 21st Century Act, a pivotal crypto regulation bill, is expected to return to the U.S. Senate in February 2025 amidst significant lobbying efforts.
Reviving the FIT21 Act could redefine U.S. crypto regulation, impacting SEC and CFTC roles and influencing asset markets with potential for increased institutional involvement and market volatility.
Wall Street Influences on FIT21 Legislative Journey
The Financial Innovation and Technology for the 21st Century Act (FIT21) aims to clarify digital asset regulations. Originally passed by the House in May 2024, the bill will be reconsidered by the Senate in February 2025 following significant Wall Street lobbying.
In this context, FIT21 endeavors to define regulatory jurisdiction between the SEC and CFTC. Stakeholders involved include Representative French Hill, Senator Tim Scott, and industry leaders like Coinbaseโs Brian Armstrong. These figures emphasize the necessity for regulatory clarity.
French Hill, Chairman, House Financial Services Committee, โFIT21 isnโt deadโexpect Senate action next month. Wall Streetโs fight over custody and clearing will shape digital asset markets. Time to clarify CFTC/SEC roles.โ
Market Response to FIT21 Legislative Prospects
Market participants have responded to the anticipated FIT21 Senate review with increased engagement. BTC and ETH markets reflect this activity, as Coinbase Institutional reports significant interest amid ongoing regulatory uncertainty over digital asset oversight.
The FIT21 billโs possible passage could refine the regulatory landscape for cryptocurrencies, notably BTC and ETH. Historical market data from the Official Bitcoin Website indicates potential for sustained gains post-legislation, highlighting the importance of legislative clarity in crypto markets.
FIT21โs Potential Echoes of 2019 Legislation
Past legislation, such as the 2019 Lummis-Gillibrand Bill, showed similar market impacts, including substantial BTC growth following temporary Senate delays. These trends suggest a structured regulatory framework can fuel market confidence.
Experts, including Coinbaseโs Brian Armstrong, predict FIT21โs impact could mirror historical outcomes. The Bitcoin Whitepaper by Satoshi Nakamoto remains a cornerstone as market participants prepare for potential legislative changes.
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