President Joe Biden’s administration will neither endorse nor reject the Financial Innovation and Technology for the 21st Century Act (FIT21), according to an official statement from the Executive Office of the President dated Wednesday. However, the statement expressed opposition to the current version of the FIT21 Act if it is approved by the U.S. House of Representatives. The administration has concerns that the Act, in its current form, would impact the regulatory framework for digital assets in the United States. Despite this opposition, the Biden administration is willing to collaborate with policymakers to develop clear legislation for cryptocurrencies. “The Administration is eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets,” the statement read.
The White House’s position aligns somewhat with U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, who has also voiced his opposition to FIT21. Gensler has emphasized the need for investor protection policies over business models centered around emerging technologies. The House Agriculture Committee Republicans disagreed with Gensler’s stance, as FIT21 has garnered bipartisan support leading up to the upcoming vote.
However, the journey of the FIT21 Act does not end with a House vote. If it is passed, it will move on to the U.S. Senate for further consideration. Scott Mason, a senior policy advisor at Holland & Knight, stated that the support of key Democrats could be crucial at this stage. “Democrat leadership is not opposing it, so if it receives the votes of 50 or more Democrats, it will send a stronger signal to the Senate to take action,” Mason explained in a private note.
Sources have hinted at House Speaker Nancy Pelosi’s support for the FIT21 crypto bill.