KEY POINTS
- GOP supporters said the bill was a chance to provide consumer protections and regulatory clarity
- Rep. Himes, a crypto skeptic, said the US deserves "better than the status quo"
- Some crypto figures have since called on Americans to urge their representatives to vote Yes
Several U.S. House Democrats have expressed support for a bill that seeks to establish a regulatory framework for the cryptocurrency industry, signaling a shifting tone among Democratic Party lawmakers who have largely been hard on the digital assets sector.
"As Democrats, we feel this is a crucial opportunity to regulate the digital assets market. This should not be a partisan issue," Representatives Wiley Nickel of North Carolina, Yadira Caraveo of Colorado, Jasmine Crockett of Texas, Darren Soto of Florida, Jim Himes of Connecticut, Don Davis of North Carolina, Josh Gottheimer of New Jersey and Ritchie Torres of New York wrote in an internal memo shared to CoinDesk by a congressional aide.
House Resolution 4763, or the Financial Innovation and Technology for the 21st Century Act (FIT21) is largely backed by Republicans and is scheduled for floor discussion Wednesday. The bill is also expected to see a vote later in the day.
Republicans of the House Committee on Financial Services said Tuesday that the bill was a chance for Congress to "provide robust consumer protections and regulatory clarity needed to foster innovation" in the country.
🎞️ To date, the U.S. digital asset ecosystem has been mired by uncertainty and regulation by enforcement.
— Financial Services GOP (@FinancialCmte) May 21, 2024
Congress has the chance to provide the robust consumer protections and regulatory clarity needed to foster innovation here in America by advancing #FIT21.
🎥 👇 pic.twitter.com/EuixOAYNae
Several prominent figures in the digital assets industry have since commented on the proposed legislation.
Founder and CEO of venture capital firm Haun Ventures, Kathryn Haun, said FIT21 is "a first step" in providing regulatory clarity for crypto businesses in the U.S. She urged Americans to "make sure your representative hears you today," adding that calls and emails to respective representatives will help educate and influence lawmakers.
We need regulatory clarity for crypto in the US. #FIT21, a bill coming to a vote this week, is a first step in providing it. If you’re one of the 52 million people who own crypto, make sure your representative hears from you today. Calls and emails make a critical difference in…
— Kathryn Haun (@katie_haun) May 21, 2024
Jesse Pollak, the creator of crypto exchange giant Coinbase's layer 2 blockchain Base, echoed Haun's sentiments, calling on crypto users to urge their representatives to vote Yes for FIT21.
have you emailed and called your congressperson to tell them to vote YES on the FIT21 Act?https://t.co/0JVYVin9Lv pic.twitter.com/cV7hFgfqHX
— Jesse Pollak (jesse.xyz) 🛡️ (@jessepollak) May 21, 2024
Crypto advocacy hub Stand With Crypto is also advocating for the passage of the proposed legislation. "It is a national priority to keep crypto innovation at home and protect the millions of jobs and users that reside within our borders," the group said.
Stand With Crypto is proud to share that we have submitted a letter to Congress on behalf of 108 US-based crypto organizations advocating for the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21).
— Stand With Crypto🛡️ (@standwithcrypto) May 21, 2024
These organizations represent over 1200 American… pic.twitter.com/JEehhjrTZq
Paul Grewal, Coinbase's chief legal officer, called out some of the Democrats who were mentioned in the memo seen by CoinDesk, challenging the crypto sector to "call these supporters #FIT21 crypto bros." He posted a photo that showed what some of the bill's Democratic backers have supposedly said about FIT21.
When logic and sound policy arguments fail, it’s predictable for some to resort to tropes and labels. Go ahead and call these supporters of #FIT21 crypto bros. I dare you. pic.twitter.com/KT3hHtLfqO
— paulgrewal.eth (@iampaulgrewal) May 21, 2024
Rep. Caraveo said HR 4763 is "not a perfect bill," although she acknowledged that it is a "good step in the right direction," as per Grewal's post. "I'm a deep skeptic of this [crypto] industry, but we deserve better than the status quo," Himes said as per the post.
News of the Democrats' seeming pivot toward better crypto regulations comes about a week after House and Senate members passed a House resolution that overturned a U.S. Securities and Exchange Commission's (SEC) contentious crypto custody bulletin.
The Wall Street regulator has been under fire in recent years for its supposed regulatory "overreach," and some GOP lawmakers have said that clear regulations should help prevent malicious activities in the industry while also allowing for innovation.
