Today, the House passed H.R. 4763, the Financial Innovation and Technology for the 21st Century Act (FIT21). This bipartisan framework establishes clear and functional federal requirements over digital asset markets.
"Clarity in digital assets is crucial. Today's bipartisan passage of FIT21 is a significant milestone. It underscores the House Committees on Agriculture and Financial Services' efforts to establish a much-needed regulatory framework," Chairman Thompson stated. "This framework is designed to protect consumers and investors while fostering American leadership in the digital asset space. I extend my thanks to Chairman McHenry for his leadership and that of our subcommittee chairs, Rep. Johnson and Rep. Hill, in moving this legislation."
“Today, the House took a historic step by passing FIT21 with broad, bipartisan support,” said Chairman Patrick McHenry (NC-10). “FIT21 provides the regulatory clarity and robust consumer protections necessary for the digital asset ecosystem to thrive in the United States. The bill also ensures America leads the financial system of the future and remains a hub for technological innovation. I appreciate the partnership of Chairman Thompson, as well as Congressmen French Hill and Dusty Johnson. This landmark initiative would not be possible without their steadfast leadership. The overwhelming support for FIT21 in the House should serve as a wakeup call to the Senate and this Administration. They must come to the table to ensure the Americans who engage with digital assets can do so safely.”
“House passage of FIT21 is necessary to bring stability and clarity to the digital assets ecosystem,” said Rep. Dusty Johnson. “Without this bill, digital asset innovation will continue to be filled with uncertainty. Today’s victory gets us one step closer to establishing clear rules of the road for developers in the industry so America can remain a global hub for tech and finance innovation. I hope the Senate considers this bill soon so we can finalize this essential framework.”
“Today is a historic day for American consumers, investors, and innovators. I applaud the House’s bipartisan passage of FIT21, which crafts a ‘fit for purpose’ regulatory framework for digital assets that protects consumers and investors while securing the United States as a leader in blockchain innovation. As FTX’s collapse showed, we need a functional regulatory framework in place to create consumer protections that currently do not exist, while ensuring America is a leader in the digital asset market,” said Rep. French Hill. “This legislation passed in a bipartisan manner, signaling that consumer protection and American innovation are priorities for lawmakers on both sides of the aisle. I thank House Financial Services Chairman Patrick McHenry, House Agriculture Committee Chairman G.T. Thompson, and Agriculture Subcommittee Chairman Dusty Johnson for their outstanding leadership and collaboration on this bill, and I applaud each member of our committees who worked tirelessly to move this landmark legislation across the House Floor. FIT21 is the first legislation of its kind in United States history to pass a chamber of Congress, and I remain committed to pushing this legislation forward until it becomes law.”
Background
In January 2023, Glenn "GT" Thompson (PA-15), Chairman of the House Committee on Agriculture, and Patrick McHenry (NC-10), Chairman of the House Financial Services Committee, came together to begin a joint committee effort to craft market structure legislation for digital asset markets.
Chairman Thompson, French Hill (AR-02), Chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion, Dusty Johnson (SD-AL), Chairman of the Subcommittee on Commodity Markets, Digital Assets, and Rural Development, Tom Emmer (MN-xx), [the Majority Whip], and Warren Davidson, Vice Chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion, introduced the resulting legislation, H.R. 4763, the Financial Innovation and Technology for the 21st Century Act, on July 20, 2023.
This bipartisan, historic legislation establishes a functional regulatory framework to protect consumers and keep innovation in the United States. FIT21 extends existing securities and commodity laws, where appropriate, and provides certain tailored changes to address the unique risks and benefits of digital assets.
Additional Resources
For text of the bill, click here.
For text summary, click here.
For a myth vs. fact breakdown, click here.
