Democratic House Leadership Will Not Whip FIT21 Despite Strong Opposition: Politico
Representatives Maxine Waters (D-CA) and David Scott (D-GA) are refraining from whipping against the Financial Innovation and Technology for the 21st Century Act (FIT21) ahead of the crypto regulation’s expected vote Wednesday, according to an email obtained by Politico on Monday.
According to the email sent by the Democratic Whip’s office, Congresswoman Waters and Congressman Scott (D-GA) state that while they “strongly oppose” the crypto regulatory framework, the representatives will not whip party members to vote against it.
H.R. 4767, also known as FIT21, has been widely supported by key players in the crypto industry. It would provide clear regulatory guidance for the digital asset sector by granting the Commodity Futures Trading Commission (CFTC) greater responsibility over crypto regulations.
NEW: House Democratic leaders said today they will NOT whip against House Republicans' crypto bill, I'm told.
The whip question sent to members this a.m. says that Waters and Scott "strongly oppose" the legislation, but does not urge them to vote "no": https://t.co/V3DSjewYzV pic.twitter.com/lORrUIo4RZ
— Eleanor Mueller (@Eleanor_Mueller) May 20, 2024
Critics argue that the bill would weaken already established safeguards against instability in the crypto market, however.
“This language undermines decades of legal precedent and case law, thereby creating uncertainty in our traditional securities market,” the Monday email read. “The bill also provides a safe harbor in which entities can file an “intent to register” if they meet certain requirements, effectively shielding them from SEC rules and regulations until SEC and CFTC finalize their rules, which weakens investor protections and opens the door to fraud and market
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