House Of Reps To Vote Today On Bill Making CFTC Primary Crypto Regulator

The US House of Representatives will vote today on a bill - Financial Innovation and Technology for the 21st Century Act (FIT21) - which would make the Commodity Futures Trading Commission, rather than the Security and Exchanges Commission, the primary regulator of cryptocurrency.

• Passage of the bill, which appears likely with Coindesk reporting, "at least eight House Democrats were vocally supporting the [bill]," would be a major win for the crypto industry but faces an uncertain future in the Senate and potential veto if it reaches President Biden’s desk.
• SEC Chair Gary Gensler said in a statementtoday the bill, "could undermine the broader $100 trillion capital markets by providing a path for those trying to escape robust disclosures, prohibitions preventing the loss and theft of customer funds, enforcement by the SEC, and private rights of action for investors in the federal courts…"
• Gensler added: “What if perpetrators of pump and dump schemes and penny stock pushers contend that they’re outside of the securities laws by labeling themselves as crypto investment contracts or self-certifying that they are decentralized systems?”
• New York Times Dealbook notes: “Crypto-friendly Republicans see Rostin Behnam, the chair of the C.F.T.C., as open to engagement, while they accuse [Gensler], of regulatory overreach.”
• Rep. Patrick McHenry (R-NC), House Financial Services Committee chair, said: "What we want is to have a substantial vote total this week in the House that will show momentum," but noted, "we're now in May of an election year," a reality which will make Senate passage challenging.