The process of creating laws for the crypto industry in the United States is moving forward quickly. The US House Financial Services Committee recently supported Mark Cuban's criticism of how the Securities and Exchange Commission (SEC) is handling cryptocurrencies. On May 11, the Committee explained on social media why it is important for Congress to pass the Financial Innovation and Technology (FIT21) Act for the 21st Century.

Growing Momentum in US Regulation Process

Over the weekend, Mark Cuban shared his worries on social media about how the SEC's actions towards cryptocurrencies could impact President Joe Biden's chances of being re-elected. In another social media post on May 11, Cuban criticized the SEC and its chairman, Gary Gensler, accusing them of trying to harm the crypto industry. He said, "The crypto industry wants to follow the rules and regulations. It wants to keep bad investments away. But the SEC makes it so hard and expensive for those who want to follow the rules that fake investments are mixed with real ones, and investors can't tell the difference."

In response, the US House Financial Services Committee acknowledged Cuban's concerns and highlighted that the SEC's current approach is making it difficult for the industry to comply with regulations. Therefore, the Committee is pushing for the FIT21 Act to fill these regulatory gaps. They believe this law will bring clarity and protection for consumers. It will also change how the SEC enforces rules and help the US crypto industry grow.

Key Points About the Process

The new law aims to clearly state the roles of both the Commodity Futures Trading Commission (CFTC) and the SEC. If the law passes, the CFTC will have more authority over crypto commodities, and the SEC's control over cryptocurrencies seen as investment contracts will be made clearer. Patrick McHenry, the Chairman of the House Financial Services Committee, said, "The Financial Innovation and Technology Act for the 21st Century is the result of bipartisan work over many years to finally bring clarity. This law will strengthen America's position in the global financial system and support our role as a hub of innovation."

Efforts to move the FIT21 Act forward have been ongoing since it was approved by the committee in July 2023, and a full vote is expected soon. Notably, major players in the crypto industry, like Grayscale, a company that issues Bitcoin ETFs, have shown support for this law as it aims to bring clarity to the regulatory landscape for cryptocurrencies.