The US House Financial Services Committee has thrown its weight behind billionaire Mark Cuban's criticism of the Securities and Exchange Commission's (SEC) approach to the crypto industry. In a recent social media post, the Committee emphasized the need for the Financial Innovation and Technology (FIT21) Act for the 21st Century to provide much-needed clarity and consumer protection.

Cuban had expressed concerns about the SEC's stance on cryptocurrencies, warning that it could impact President Joe Biden's re-election bid. He argued that the commission's approach is hindering the industry's ability to comply, making it difficult for investors to distinguish between genuine and fake tokens. The Committee acknowledged Cuban's concerns and is pushing for the FIT21 Act to address regulatory gaps.

The proposed legislation aims to clearly define the roles of the Commodity Futures Trading Commission (CFTC) and the SEC. The CFTC will oversee crypto commodities, while the SEC will regulate cryptocurrencies presented as investment contracts. Chairman Patrick McHenry noted that the law will reinforce America's leadership in the global financial system and strengthen its role as an international center of innovation.

Efforts to advance the FIT21 Act have been ongoing since its committee approval in July 2023, with a floor vote expected soon. Major crypto stakeholders, including Grayscale, a Bitcoin ETF issuer, have expressed support for the proposed law, welcoming the effort to provide regulatory clarity for the crypto ecosystem.