Keystone Today

The House Committee on Rules has announced its intention to consider the Financial Innovation and Technology for the 21st Century (FIT21) Act, paving the way for a floor vote later this month. The FIT for the 21st Century Act is viewed as a significant initial move towards attaining regulatory clarity for digital assets. FIT21 aims to provide robust, time-tested consumer protections and regulatory certainty necessary for the digital asset ecosystem to thrive in the United States.

House Committee on Agriculture Chairman Glenn “GT” Thompson (PA-15) stated, “FIT21 is a regulatory foundation to safeguard consumers and investors but also propels American leadership in digital finance. Our collaborative effort establishes the essential clarity and security needed to foster innovation and ensure our nation's prominence in the global technological revolution. This is the product of extensive feedback from stakeholder and market participants and historic coordination with the Financial Services Committee. This legislation is desperately needed, and I am excited to be able to advance that effort today.”

House Financial Services Committee Chairman Patrick McHenry (NC-10) added, “For far too long, the U.S. digital asset ecosystem has been plagued by regulatory uncertainty that has stifled innovation and left consumers unprotected. This comprehensive market structure legislation—the Financial Innovation and Technology for the 21st Century Act—is the culmination of years of bipartisan efforts to finally provide clarity."

Congressman Dusty Johnson (SD-AL) said, “The FIT for the 21st Century Act is a historic piece of legislation with two committees working jointly to craft a framework for digital assets in the U.S.”

Congressman French Hill (AR-02) also expressed his support: “After tirelessly working across the aisle and across the nation over the past year to craft a clear, pragmatic regulatory framework for digital assets, I am proud that this landmark legislation is coming to the House Floor.”

Introduced on July 20, 2023 by Chairman Glenn “GT” Thompson, Rep. French Hill, Rep. Dusty Johnson, Whip Tom Emmer, and Rep. Warren Davidson, FIT21 establishes clear federal requirements over digital asset markets. It provides consumer protections and regulatory clarity necessary for the digital asset ecosystem to thrive in the U.S., reinforcing American leadership of the global financial system while bolstering our role as a hub for innovation.

The legislation provides the Commodity Futures Trading Commission (CFTC) with new jurisdiction over digital commodities and clarifies the Securities and Exchange Commission’s (SEC) jurisdiction over digital assets offered as part of an investment contract. The bill also imposes comprehensive customer disclosure, asset safeguarding, and operational requirements on all entities required to be registered with the CFTC and/or the SEC.

FIT21 aims to protect consumers by strengthening transparency and accountability with market participants, safeguarding digital asset projects, and protecting digital asset customer-serving institutions by establishing clear lines between the SEC and CFTC.