Consensus: 21st Century FIT21 Act Ensures US Leadership in Digital Assets Market

IconCryptoNewsTerminal Staff22 May, 2024

cryptonews.jpg

Consensus: 21st Century FIT21 Act Ensures US Leadership in Digital Assets Market

ConsenSys, an Ethereum infrastructure development company emphasized the importance of the 21st Century Financial Innovation and Technology (FIT21 Act) bill, recently passed by the U.S. House. The company believes that the bill is crucial for maintaining U.S. dominance in the digital asset sector. The current regulatory landscape is seen as a hindrance to innovation, potentially jeopardizing the future of Web3 and Ethereum. The FIT21 Act aims to bring clarity to this complex regulatory environment. ConsenSys strongly supports this bipartisan effort which seeks to safeguard consumers and markets while fostering innovation for blockchain businesses. A significant aspect of the bill is the authority it grants to the CFTC over digital commodity markets, including exchanges and broker-dealers. It also provides clarification that a crypto token will not be automatically classified as a security simply because it meets the definition of an investment contract. This suggests that a large portion of crypto assets, potentially as much as 70%, could be categorized as commodities rather than securities.

Related News