FIT21 Bill Seen As Solution to US Crypto Exodus Concerns, Paving Way for Thriving Market

cryptonews.com:

The Financial Innovation and Technology for the 21st Century Act’s (FIT21) approval on Wednesday would align the US with other nations in terms of its regulatory framework for crypto, according to Kyle Bligen, director of financial policy at the Chamber of Progress.

Bligen told Cryptonews in an interview Thursday that if the FIT21 bill passes the Senate and becomes law, it would stop crypto companies from leaving the US for countries with clearer regulations.

The legislation would provide increased freedoms to cryptocurrency operators in the US. Additionally, it would shift more regulatory responsibility for digital assets to the Commodity Futures Trading Commission (CFTC).

It would also make it clear which businesses the SEC and CFTC regulate and would create a system for registering these businesses. This would allow them to legally serve customers who want to buy and sell digital assets. The SEC would oversee digital assets that are considered securities, while the CFTC would oversee things like commodities and derivatives related to digital assets.

Bligen pointed out the fact that the US has been using a nearly century-old law, the Howey Test, from the SEC to regulate cryptocurrency that was invented just a few years ago. He argued that the current system is outdated and doesn’t work for this technology.

“Hopefully this [bill] establishes the US as a regulatory leader that wants strong consumer protections,” he said. “We already have the most liquid, most attractive capital markets in the US. There’s no reason why we can’t have the best cryptocurrency markets as well.”

Harry Sudock, chief strategy officer at Bitcoin miner GRIID, agrees that the bill would propel the US to a competitive position in the international