The US is on the verge of voting on the Financial Innovation and Technology Act (FIT21), a comprehensive crypto market structure bill led by Republicans. While investment bank TD Cowen believes the bill has a low chance of becoming law in the current Congress, it could lay the groundwork for future legislative efforts.

The FIT21 bill aims to regulate the crypto market by assigning more responsibility to the Commodity Futures Trading Commission (CFTC), considered a more lenient regulator for cryptocurrencies. However, the bill faces significant challenges, including lack of preparatory work by the Senate and Democrats' focus on investor protections.

Despite these obstacles, TD Cowen views FIT21 as a crucial foundation for future crypto market structure legislation, expected in 2025/2026. The bill brings together House members and shifts focus to the Senate to implement its proposal. The vote could reveal how Democrats and Republicans approach critical issues like money laundering prevention and investor protections.

The political landscape, including Donald Trump's recent support for crypto, may impact future regulations. While FIT21 faces significant hurdles, it could be a stepping stone for future efforts. The crypto community and investors will closely watch developments around FIT21 and its market implications.