The Financial Innovation and Technology for the 21st Century Act Is a Watershed Moment for Our Industry

The
passage
of
the
Financial
Innovation
and
Technology
for
the
21st
Century
Act
(FIT21)
by
the
U.S.
House
of
Representatives
is
a
major
milestone
for
the
digital
asset
industry.
As
head
of
the
Blockchain
Association,
the
leading
trade
group
representing
this
sector,
I’m
heartened
to
see
such
strong
bipartisan
support
for
attempting
to
codify
clear
rules
that
aim
to
enable
responsible
innovation
while
protecting
consumers.

Note:
The
views
expressed
in
this
column
are
those
of
the
author
and
do
not
necessarily
reflect
those
of
CoinDesk,
Inc.
or
its
owners
and
affiliates.
Kristin
Smith
is
CEO
of
the
Blockchain
Association,
the
Washington
DC-based
trade
association
representing
crypto.

For
too
long,
the
regulatory
landscape
for
digital
assets
in
the
United
States
has
been
an
untenable,
muddled
mess.
Different
federal
agencies
have
asserted
conflicting
jurisdiction,
creating
confusion
and
uncertainty
in
the
marketplace.
Meanwhile,
the
U.S.
Securities
and
Exchange
Commission
(SEC)
has
taken
advantage
of
this
precarious
situation,
supercharging
a
campaign
of
intimidation
and
enforcement
that
threatens
the
viability
of
crypto
in
the
U.S.

This
has
led
to
further
uncertainty,
expensive
legal
battles
and
the
risk
of
the
U.S.
falling
behind
other
regions
such
as
the
European
Union
in
fostering
a
vibrant,
homegrown
crypto
landscape.

The
status
quo
is
simply
not
working
for
anyone
–
not
companies
building
innovative
new
products
and
services,
not
investors,
and
certainly
not
consumers.
It
was
time
for
Congress
to
step
in,
reclaim
its
rightful
place
as
the
engine
room
of
economic
policymaking,
and
draft
a
modern,
fit-for-purpose
regulatory
framework.

While
the
legislation
should
be
further
refined
as
it
moves
to
the
Senate,
FIT21
represents
a
notable
step
in
the
right
direction.
It
acknowledges
the
fundamental
promise
of
crypto
and
blockchain
technology
and
endeavors
to
promote
innovation
while
protecting
consumers.
This
legislative
approach
of
balancing
those
key
priorities
is
exactly
what
our
industry
has
been
advocating.
It’s
also
what
consumers
are
demanding.

We
commend
the
efforts
of
House
Financial
Services
Committee
Chairman
Patrick
McHenry
(R-N.C.)
and
House
Agriculture
Committee
Chairman
Glenn
Thompson
(R-Pa.)
who
spearheaded
this
legislation.
They
dedicated
months
of
work,
consistently
engaging
with
industry
stakeholders,
including
with
Blockchain
Association
member
companies,
to
understand
the
key
issues
and
try
to
get
the
framework
right.

While
FIT21
isn’t
perfect
–

no
bill
is
–
we
will
continue
advocating
for
productive
changes.
Today’s
vote
represents
undeniable
forward
progress
on
the
path
to
a
rational
policy
environment
that
unlocks
clarity
for
digital
assets
in
the
United
States.
After
the
difficulties
of
2022,
it
is
gratifying
to
see
elected
leaders
champion
this
critical
technology
that
a
growing
number
of
Americans
want
their
government
to
support,
or
at
the
very
least
not
impede.

The
House
vote
reaffirms
crypto’s
growing
political
momentum,
following
positive
developments
such
as
the
recent
bipartisan
congressional
repeal
of
SAB121,
the
SEC’s
misguided
and
illegal
accounting
guidance.
A

recent
poll
shows
large
and
growing
factions
of
the
American
electorate
want
to
elect
politicians
that
understand
crypto
and
are
willing
to
respect
and
support
the
technology’s
growth
in
the
U.S.

And
crypto
may
yet
become
a
live
issue
in
the
upcoming
presidential
race,
with
former
President
Trump
recently
embracing
the
technology
with
an
explicit
ask
for
support.

As
FIT21
advances
to
the
Senate,
Blockchain
Association
and
our
members
will
remain
constructively
engaged,
advocating
for
smart
policies
that
foster
responsible
innovation
and,
most
of
all,
protect
consumers.
We
express
sincere
gratitude
to
the
House
leaders
who
led
the
charge
to
reach
this
watershed
moment
–
and
we
look
forward
to
maintaining
crypto’s
extraordinary
political
momentum
in
the
months
ahead.