House to Vote on Bill Declaring Majority of Crypto a Commodity
CryptoNewsTerminal Staff21 May, 2024
House to Vote on Bill Declaring Majority of Crypto a Commodity
The House is expected to vote on a bipartisan bill today that would declare the "vast majority of crypto" a commodity. The Financial Innovation and Technology Act of 21st Century (FIT21 Act) passed the House Agriculture and Financial Services Committee last year and was approved for a floor vote earlier this month. The bill aims to provide regulatory clarity for the crypto industry and would give the Commodity Futures Trading Commission (CFTC) the authority to regulate digital commodity markets, including exchanges and broker-dealers. Currently, the SEC and CFTC are jointly working on crypto regulations due to uncertain regulatory landscape. The bill also reportedly states that a crypto token cannot be a security based solely on the existence of an investment contract and that around 70% of all cryptocurrencies should be classified as commodities, not securities. The FIT21 Act has received support from industry groups and some lawmakers, but it has raised concerns from others who believe it does not go far enough to protect investors. The bill's passage is not guaranteed, but it would represent a significant step towards providing regulatory clarity for the crypto industry.
