House Passes FIT21 Act in Historic Vote, Coinbase CEO Brian Armstrong Applauds Move Towards Clear Crypto Regulations

In a significant development for the cryptocurrency industry, the House of Representatives has recently passed the Financial Innovation and Technology for the 21st Century Act (FIT21), a piece of legislation that could pave the way for clearer cryptocurrency regulation in the United States. This legislative milestone has been met with enthusiasm from key industry figures, including Coinbase CEO Brian Armstrong, who hailed the House’s decision as a historic vote in favor of cryptocurrency.

The approval of FIT21 by the House represents a crucial step toward establishing a regulatory framework for digital assets. With a surprisingly strong bipartisan support, 71 Democrats joined their colleagues in voting in favor of the bill, demonstrating a growing consensus on the need for regulatory clarity in the rapidly evolving crypto space. This development sends the bill to the Senate, where it will undergo further debate and scrutiny.

Armstrong’s response to the House vote underscores the crypto community’s desire for sensible regulation. He emphasized that American citizens are keen on protecting their rights to use cryptocurrencies, while also ensuring that there are clear rules in place to safeguard consumers and prevent the misuse of regulatory ambiguity by activists targeting the industry. Armstrong’s advocacy for clear crypto regulations is part of a broader push by industry leaders to foster an environment where innovation can thrive without being stifled by legal uncertainties.

Coinbase, under Armstrong’s leadership, has been at the forefront of this push for regulatory clarity. The company has not only voiced its concerns over the current regulatory landscape but has also taken proactive steps to influence policy. One such initiative is the formation of Stand With Crypto, a crypto advocacy group founded by Coinbase, aimed at rallying support for sensible cryptocurrency regulations.

The journey of FIT21 through the legislative process is far from over, as it now moves to the Senate for consideration. The Biden administration has expressed opposition to the bill, arguing that it does not provide adequate protections for digital asset investors and consumers. This opposition sets the stage for potentially challenging debates in the Senate. However, the White House has indicated that it will not issue a veto threat against FIT21, leaving room for negotiation and possible amendments to address the administration’s concerns.

This legislative effort comes at a time when the relationship between the cryptocurrency industry and regulators has been particularly strained. In June 2023, the Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, alleging violations of securities law concerning 13 cryptocurrencies, including solana and Cardano. The lawsuit marked a significant escalation in the SEC’s scrutiny of the crypto industry, highlighting the urgent need for clear regulatory guidelines.

Coinbase’s call for a robust crypto regulatory framework is not new. In March 2024, the company appealed to an appeals court, urging the SEC to undertake rulemaking that adheres to the Administrative Procedures Act. Coinbase’s argument is that the SEC’s reluctance to clarify its regulatory stance on digital assets has left the industry in a state of uncertainty, hindering innovation and growth.

The passage of FIT21 in the House, despite opposition from some lawmakers who echo the concerns of the Biden administration about investor protection, represents a notable achievement for the cryptocurrency industry. However, as the bill progresses to the Senate, it will be crucial for stakeholders to engage in substantive discussions to address the concerns raised by its critics.

The debate over FIT21 and the broader issue of cryptocurrency regulation is a testament to the complex challenges that lawmakers face in regulating an innovative and rapidly evolving industry. As the Senate deliberates on the bill, the outcome will have significant implications for the future of cryptocurrency in the United States, affecting investors, consumers, and the industry at large.