FIT21 legislation

FIT21 legislation for discussion-

The FIT21 legislation is a bill that aims to provide a clear and comprehensive regulatory framework for digital assets in the United States. It was introduced by Republican members of the House Financial Services and Agriculture Committees on July 20, 2023¹². It passed the votes of the two House committees on July 26 and 27, respectively³⁴.

Some of the main features of the FIT21 legislation are:

• It defines digital assets as either digital commodities or digital securities, depending on their characteristics and functions¹².
• It gives the Commodity Futures Trading Commission (CFTC) the primary authority to regulate digital commodities, and the Securities and Exchange Commission (SEC) the primary authority to regulate digital securities¹².
• It establishes a Digital Asset Innovation Office within both the CFTC and the SEC, to coordinate with each other and foster innovation in the digital asset space¹².
• It creates a Digital Asset Regulatory Sandbox to allow qualified entities to test new products and services in a controlled environment, with certain exemptions and waivers from existing rules¹².
• It sets up a Digital Asset Advisory Committee to advise the CFTC and the SEC on emerging issues and best practices related to digital assets¹².

The FIT21 legislation is intended to protect consumers and investors, promote fair and transparent markets, and ensure U.S. leadership in financial and technological innovation¹². It is also a response to the FTX scandal, where the crypto exchange allegedly stole billions of customer funds and fled the country¹.

Source: Conversation with Bing, 31/12/2023 (1) Committees Introduce Financial Innovation and Technology for the 21st .... https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=408921. (2) H.R. 4763: Financial Innovation and Technology for the 21st Century Act. https://www.govtrack.us/congress/bills/118/hr4763.