The U.S. House of Representatives voted on the Financial Innovation and Technology for the 21st Century Act (FIT21), the first step of a U.S. regulatory framework to achieve regulatory clarity for digital assets. Ripple vs SEC lawsuit, Judge Torres’ summary judgment, and support from XRP army including lawyers have played a crucial role in preparing for the landmark bipartisan crypto bill, as per pro-XRP lawyer John Deaton’s CryptoLaw.
FIT21 Crypto Bill Passes
US House the Financial Innovation and Technology for the 21st Century Act (FIT21), H.R. 4763, will provide regulatory clarity over the regulation of digital assets and protect consumers, becoming the most important crypto bill to date. The Republican-favored crypto bill has become a key discussion affair amid the upcoming election this year.
Some Democrats have also supported the crypto bill that will provide clarity regarding which regulator either the SEC or CFTC has jurisdiction over digital assets. Along with providing consumer and investors protection, it will help distinguish which digital assets are commodities and securities.
US House Ranking Member Maxine Waters says the bill is not fit for purpose and can create massive loopholes. Democrats spoke against the crypto bill. Meanwhile, the White House said it will not issue a veto threat against FIT for the 21st Century Act, if passed in House.
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Mentions of Ripple Vs SEC in Part of FIT21
CryptoLaw, founded by Deaton Law Firm, said Ripple vs SEC lawsuit, Judge Torres’ decision in the case, and XRP Army’s relentless pressure to seek clarity have helped in addressing the creation of the bill.
A section in the crypto bill aims to clarify treatment of digital assets sold pursuant to an investment contract. “A digital asset sold or transferred or intended to be sold or transferred pursuant to an investment contract is not and does not become a security as a result of being sold or otherwise transferred pursuant to that investment contract,” it reads.
Judge Torres affirmed this in the Ripple Vs SEC lawsuit that the token itself is not a security such as programmatic sales by exchanges, but offers and sales of the token to institutions are securities. The XRP community called for amendments in the existing securities law for practicality to new technologies.
CryptoLaw stated that SEC Chair Gary Gensler opposes the FIT21 as he wants to continue arguing against Judge Torres’ summary judgment.
House Committee on Agriculture has criticized Gary Gensler and the SEC for the political nature of their position. It also highlighted that the XRP decision in July 2023 was key development in creating a regulatory framework.
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Read More: Ripple Vs SEC, Torres Decision, XRP Army’s Role in Bill