The Financial Innovation and Technology for the 21st Century Act (FIT21), which aimed to establish a federal framework for cryptocurrency regulation, is likely dead following significant political changes. Once celebrated by the crypto lobby after passing in the House earlier this year, sources indicate that the pro-crypto FIT21 bill is now considered an inadequate compromise. With control of the White House, Senate, and House shifting to Republicans, the crypto lobby is now focusing on more comprehensive legislation rather than pushing a bill seen as flawed. The original intent of FIT21 was to delineate authority between the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC). Despite initial bipartisan support, industry insiders critique its failure to adequately safeguard certain digital assets, suggesting that industry factions may now become fragmented in pursuit of ideal regulations. Sheila Warren of the Crypto Council for Innovation reflects on the shifting political landscape's potential to foster new legislative opportunities while warning of possible infighting within the crypto sector as different factions vie for influence over regulatory developments.

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