Maxine Waters, a Democratic member of the US House, criticized the FIT21 cryptocurrency market structure bill, labeling it as one of the worst bills she has encountered. The bill received support from seventy-one Democratic members, including former House Speaker Nancy Pelosi. This marks the first time the American House of Representatives has voted on comprehensive cryptocurrency legislation.

The recent legislation marks an initial effort to establish a regulatory framework for digital assets, highlighting the importance of fortifying the cryptocurrency ecosystem for consumers, taxpayers, and investors. With this legislation, the CFTC will gain enhanced regulatory authority over cryptocurrency markets and digital assets.

The bill also addresses secondary market trading of digital assets, as well as provisions for anti-money laundering and stablecoins. It will undergo further debate in the next Congress, reflecting the evolving perspectives of lawmakers on cryptocurrency.

This legislative development holds significant implications for the global cryptocurrency market and underscores the link between cryptocurrency issues and upcoming American elections. The current administration recognizes the need for regulatory clarity in this space. The FIT21 follows the deletion of an SEC accounting bulletin, with Democratic support leading to the White House's intention to veto the legislation. Collaboration between the Oval Office and Congress is anticipated to establish a regulatory framework for digital assets.

Despite receiving criticism from various quarters, including Democratic members, the new legislation will strain the resources of the CFTC. Some believe that it does not provide adequate authority for the CFTC to monitor the crypto industry effectively. However, the new crypto policy aims to safeguard the interests of the broader cryptocurrency industry. Key lawmakers in the Democratic-dominated US Senate have shown less enthusiasm for the bill, reflecting differing viewpoints on investor protection and anti-money laundering efforts.

This legislation represents the first standalone cryptocurrency market structure bill in US history, signaling an ambitious effort to redefine America's regulatory approach to digital assets. Its passage is expected to enjoy bipartisan support in the US House.

The FIT21 will significantly empower the American CFTC in regulating spot markets, raising questions about the jurisdictional boundaries of the Securities and Exchange Commission. While sparking intense debates within the global crypto community, this legislation represents a crucial step towards regulating the crypto industry and fostering blockchain innovation in the American landscape.