The U.S. House of Representatives passed the FIT21 Act on May 22 with a majority vote of 279 to 136, advancing it to the Senate.
McHenry emphasized to Bloomberg’s Balance of Power on May 30 that the overwhelming backing from the House should serve as a clear message to the Senate, urging them to proceed promptly with the legislation.
He stressed the importance of maintaining focus on crafting and finalizing policy before the upcoming election.
The legislation sets the stage for categorizing the majority of cryptocurrencies as commodities, subjecting them to regulation by the Commodity Futures Trading Commission (CFTC).
In general, the cryptocurrency industry views the CFTC as more supportive of cryptocurrencies than the SEC. Nonetheless, the SEC would continue to have jurisdiction over cryptocurrencies that lack adequate decentralization.
The chairman of the House Financial Services Committee, who plans to retire from Congress in January, noted that the Senate initially reacted with surprise to the significant margin by which the bill had passed the House.
McHenry emphasized the significance of passing the crucial FIT21 bill with a two-thirds vote in the House of Representatives during these politically divided times, stating it as a significant statement.
There’s no set deadline for the Senate to act on FIT21. Passage of the bill necessitates a majority vote from at least 51 senators.
McHenry, who has been working with Democrat Maxine Waters on legislation concerning cryptocurrencies and stablecoins, suggested that any forthcoming regulations would probably have to be included in a broader legislative package to progress through the Senate.
Opponents of the crypto bill contend that it overly favors the industry, whereas the Biden administration has stressed the importance of digital asset legislation striking a balance between consumer protection and fostering opportunities for crypto innovation.
McHenry also objected to Senate Banking Chairman Sherrod Brown’s proposal to tie a stablecoin package to a bipartisan marijuana banking bill, which holds significance for Schumer.
McHenry expressed his opposition to the cannabis banking legislation, citing his past voting record as evidence of his stance.
He mentioned that Republicans would exert pressure effectively to encourage Schumer and the Senate to prioritize the passage of a crypto bill.
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