The passage of the 21st Century Financial Innovation and Technology Act (FIT21) by the U.S. House of Representatives is a major milestone for the digital asset industry. As president of the Blockchain Association, the sector's leading industry association, I am proud to say that the bipartisan effort to codify clear rules aimed at enabling responsible innovation while protecting consumers has never been stronger. I'm glad to see your support.
Note: The views expressed in this column are those of the author and do not necessarily reflect the views of CoinDesk, Inc. or its owners or affiliates. Kristin Smith is the CEO of the Blockchain Association, a cryptocurrency industry group based in Washington, DC.
The U.S. digital asset regulatory environment has long been unsustainable and chaotic. Various federal agencies have claimed conflicting jurisdictions, creating confusion and uncertainty in the market. Meanwhile, the U.S. Securities and Exchange Commission (SEC) has taken advantage of this volatile situation to step up its campaign of intimidation and coercion that threatens the continued existence of cryptocurrencies in the United States.
This creates further uncertainty, costly legal battles, and the risk that the United States will fall behind other regions, such as the European Union, in fostering a vibrant, home-grown cryptocurrency industry.
Maintaining the status quo doesn't work for anyone. Not for the companies building innovative new products and services, not for investors, and certainly not for consumers. It is time for Congress to step in, reclaim its rightful place as the engine room of economic policymaking, and draft a modern, fit-for-purpose regulatory framework.
While the bill will need further refinement when it makes its way to the Senate, FIT21 represents a notable step in the right direction. It recognizes the fundamental promise of cryptocurrency and blockchain technology and strives to foster innovation while protecting consumers. This legislative approach that balances these important priorities is exactly what our industry has been advocating for. It is also what consumers have been demanding.
We commend the efforts of House Financial Services Committee Chairman Patrick McHenry (R-Pa.) and House Agriculture Committee Chairman Glenn Thompson (R-Pa.) in spearheading this bill. They dedicated months of work to understand the key issues and get the framework right, consistently engaging with industry stakeholders, including Blockchain Association member companies.
FIT21 is not perfect, but There is no bill – We will continue to advocate for productive change. Today’s vote represents an undeniable step forward on the path to a rational policy environment that increases transparency for digital assets in the United States. After the challenges of 2022, we see our elected leaders championing this critical technology that a growing number of Americans want their government to support, or at least not hinder. It's a pleasure.
The House vote reaffirms the growing political momentum for cryptocurrencies following recent positive developments such as bipartisan Congressional passage of SAB 121, the repeal of the SEC's erroneous and unlawful accounting guidance. Recent polls indicate that a large and growing faction of the American electorate wants to elect politicians who understand cryptocurrencies and are prepared to respect and support their growth in the United States.
Additionally, former President Trump has recently actively supported cryptocurrency technology and called for explicit support, suggesting that cryptocurrencies could become an important issue in the upcoming presidential election.
As FIT21 advances through the Senate, the Blockchain Association and its members will continue to engage constructively and advocate for smart policies that foster responsible innovation and, above all, protect consumers. We extend our sincere gratitude to House leaders for leading the way to reach this watershed moment and look forward to continuing the extraordinary political momentum for cryptocurrency in the months ahead.
