A coalition led by the Crypto Council for Innovation (CCI) and supported by 60 other crypto companies and organizations has endorsed the Financial Innovation and Technology for the 21st Century Act (FIT 21). Prominent figures, including U.S. Representative French Hill, are advocating for the enactment of this pivotal legislation.

Strong Backing for FIT21 from the Crypto Community

FIT21 represents a groundbreaking effort to bring much-needed regulatory clarity to the cryptocurrency sector while ensuring protections for consumers and investors. The bill has garnered support from numerous digital asset companies and industry groups, all committed to working with policymakers to establish a clear regulatory framework that will position the U.S. as a leader in technological innovation.

Among the supporters are CCI, The Digital Chamber, Stand With Crypto, and major crypto firms such as Andreessen Horowitz, Coinbase, Circle, Digital Currency Group, Galaxy, Gemini, and Sei. These entities have collectively signed a letter endorsing H.R. 4763, also known as the Financial Innovation and Technology for the 21st Century Act (FIT 21).

Regulatory Clarity and Consumer Protection

The proposed law aims to create a comprehensive regulatory framework for the issuance and trading of digital assets, overseen by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). This framework will delineate which digital assets fall under the jurisdiction of the SEC and which are regulated by the CFTC.

In addition to providing regulatory clarity, FIT21 includes measures to protect consumers, such as segregating customer funds, requiring risk disclosures, extending bankruptcy protections, imposing minimum capital requirements, and addressing conflicts of interest.

U.S. Falling Behind in Crypto Regulation

The United States is currently lagging behind other major economies in establishing a regulatory framework for digital assets. Countries like the European Union, the United Kingdom, Singapore, Japan, South Korea, the UAE, Brazil, and Australia have made significant strides in this area. Without effective legislation from Congress, American innovators may continue to seek opportunities in more favorable regulatory environments abroad.

Crypto industry leaders have cautioned that the continued reliance on offshore markets by American investors and consumers poses risks to national security and the economy.

Conclusion

The support for FIT21 highlights a unified effort within the crypto industry to push for regulatory clarity and consumer protection in the United States. The passage of this legislation is seen as essential for maintaining the country's competitive edge in technological innovation and ensuring the safety and security of the financial ecosystem.