Investment bank TD Cowen has weighed in on the crypto bill FIT21, stating that it has little to no chance of becoming law this year. However, the upcoming vote on the bill will offer a unique opportunity to gauge lawmakers' stance on critical issues like money laundering prevention and investor protections. Despite the slim chances of passage, the bill is expected to lay the groundwork for future regulatory efforts.

TD Cowen's assessment suggests that the crypto bill faces significant hurdles, particularly in the Senate. Leading Democrat Representatives, including Maxine Waters, have expressed opposition to the bill, while Senate Banking Committee Chairman Sherrod Brown has remained silent on the issue. Nevertheless, the vote on FIT21 will provide valuable insights into the political landscape surrounding crypto regulation.

The Financial Innovation and Technology Act for the 21st Century (FIT21) aims to regulate the crypto market comprehensively, with a focus on imposing greater responsibility on the Commodity Futures Trading Commission. While the bill has passed the House Financial Services Committee and the House Agriculture Committee, its chances of becoming law this year are slim. However, House Financial Services Committee Chairman Patrick McHenry remains optimistic, describing the bill as a bipartisan effort to provide clarity in the digital asset markets.

Although FIT21 may not become law this year, it is expected to prepare the groundwork for future regulatory efforts. The crypto community will be closely watching the developments surrounding this bill, as it may set the stage for more comprehensive regulation in 2025 and 2026. As the crypto market continues to evolve, one thing is clear: regulation is inevitable, and bills like FIT21 will play a crucial role in shaping the future of cryptocurrency.