On Wednesday, the U.S. House of Representatives passed the crypto-friendly bill dubbed the Financial Innovation and Technology for the 21st Century Act (FIT21).

The bill, which aims to establish a comprehensive regulatory framework for digital assets, was approved with bipartisan support in a 279-136 vote. The approval of the FIT21 could pave the way toward crypto regulatory clarity in the United States.

The vote in favor included 71 Democrats and 208 Republicans, who voiced the need for crypto regulations in the country.

Introduced in July 2023, the bill aims to define the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing cryptocurrencies. It also establishes guidelines for various aspects of the crypto market, including token issuance, trading, and custody.

Several legislators have expressed their strong support for the bill's passage. Congressman John Rose highlighted the need to move away from regulation by enforcement.

"I've had enough of Biden Administration officials regulating by enforcement. That's why I support FIT21, legislation preventing the government from standing in the way of digital innovation. The bill includes critical guardrails that will protect consumers and foster innovation," Congressman Rose said.

Industry Reactions

Industry leaders echoed this enthusiasm. Brad Garlinghouse, CEO of Ripple, praised the bipartisan support for FIT21 and criticized the SEC's approach to crypto regulation.

"Today, more than ever, we are seeing what a political liability Gensler has been to the Biden administration. It's the reason we saw 71 Democrats cross the aisle and support FIT21. We are just getting started!" Garlinghouse wrote on his X (Twitter) account.

Jake Chervinsky, Chief Legal Officer at Variant, also shared his perspectives regarding the bill's passage. He sees it as a vote of no confidence in the SEC's current stance on crypto.

"House Democrats voting in favor of this bill: 71. That is a huge number of elected Democrats voting 'no confidence' in the current SEC, and sending a message to the Biden administration that 'anti-crypto' is a losing platform this year," he said.

Opposition and Next Steps

Despite the significant progress in the House, FIT21 faces an uncertain future in the Senate.

A counterpart bill is currently absent, and the necessary committees have yet to engage in the same level of work on crypto. This makes the path forward less specific.

Yet, the White House has opposed the bill, citing concerns about consumer and investor protections. The administration acknowledges the need for a regulatory framework for digital assets but believes FIT21 requires additional safeguards in its current form.

"The Administration looks forward to continued collaboration with Congress on developing legislation for digital assets that includes adequate guardrails for consumers and investors while creating the conditions needed for innovation, and further time will be needed for such collaboration," the White House wrote.

However, President Joe Biden's statement did not mention a veto threat, contrasting with his stance on another crypto-related bill, Staff Accounting Bulletin 121 (SAB 121).

BeInCrypto previously reported that SEC Chair Gary Gensler strongly opposed the bill before the House vote. He argued that it weakens SEC oversight and warned that it could increase investor risks and harm U.S. markets.

Despite the opposition, the passage marks a pivotal moment in the ongoing effort to provide clear regulations for the crypto industry in the U.S. With the FIT21 Act now in the Senate's hands; the industry is watching closely to see if it will become law.

Nevertheless, this development will transform the regulatory environment for digital assets in the United States.