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Bitcoin and Ethereum Move Over Proposed Cryptocurrency Legislation
Bitcoin (BTC-USD) and ethereum (ETH-USD) are recovering this week as are investors optimistic about a new regulatory framework and approval for an ether ETF that could revive the sector. Yahoo Finance Reporter Jennifer Schonberger has more on new legislation that could change the cryptocurrency industry.
Today the House will vote for the first time on cryptocurrency legislation known as the Financial Innovation and Technology for the 21st Century Act, or FIT21. This act would make the Commodities Futures Trading Commission (CFTC) the primary regulator of digital assets and establish consumer protections.
Republican lawmakers say FIT21 will bring clarity to the cryptocurrency industry, while Democrats believe it would effectively deregulate most cryptocurrencies by removing them from the purview of the Securities and Exchange Commission (SEC).
The vote will take place today around 5pm ET and is expected to pass. However, FIT21’s future in the Senate remains unclear.
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This post was written by Melanie Riehl
Video transcription
Let’s now move on to cryptocurrencies, both Bitcoin and Ethereum.
On the rise this week, investors looking to Washington DC are hoping that regulation and new products could potentially expand the sector’s appeal.
Joining us now to expose what’s on the table for cryptocurrencies in Washington is all ours.
Jennifer Schomer, Jen.
Good morning, Shana.
Right.
The cryptocurrency world is hoping for some gains this week in Washington as it pushes for a new regulatory framework and ETF approval.
Today, the House will vote for the first time on comprehensive cryptocurrency legislation called the Financial Innovation and Technology for the 21st Century Act or as it is known short fit 21.
This legislation, pushed for much of the year by Financial Services Chairman Patrick Mchenry, would establish the future of commodities and the Commission as the primary regulator of digital assets.
There would be clear divisions over what the CFTC would regulate and what would fall under the purview of the Securities and Exchange Commission, which has vehemently cracked down on the cryptocurrency industry with a litany of enforcement actions.
This legislation would also establish consumer protections and borrow the type of custom fund commingling that played a role in the destruction of cryptocurrency exchange FTX in 2022.
Now, Republican lawmakers say this legislation will bring clarity to the cryptocurrency industry.
But most Democrats led by House Financial Services Committee ranking member Maxine Waters opposed the bill Waters warns that the bill would effectively deregulate most cryptocurrencies by removing them from the purview of the SEC.
The story continues
In a rare rebuke from the chairman of the executive committee, Gary Ginzler this morning issued a lengthy statement on the legislation saying it would, quote, create new regulatory loopholes and undermine decades of precedent regarding the oversight of investment contracts, exposing investors in the markets of capital at a measurable risk. .
The House is expected to vote on this legislation this afternoon around 5pm, where it is expected to pass the House largely thanks to support from Republicans and a handful of Democrats.
But the prospects in the Senate remain.
Dimmer Mchenry told reporters late yesterday afternoon that he hopes a strong vote count will galvanize the Senate to take a fresh look at this legislation.
Meanwhile, elsewhere here in Washington, the SEC is reportedly facing a May 23 deadline, which is tomorrow, for approval or rejection of an E ETF. When I asked the SEC for comment, they said that we do not comment on individual documents.