Wednesday, July 3, 2024
Patrick McHenry Chairman United States House Committee On Financial Services | Official Website

House debates bill aiming to regulate U.S. digital asset ecosystem

On May 22, 2024, Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), led Republicans in debating H.R. 4763, the Financial Innovation and Technology (FIT) for the 21st Century Act on the House floor. The FIT21 Act aims to provide comprehensive federal guidelines for the U.S. digital asset ecosystem, ensuring robust consumer protections and regulatory certainty.

In his prepared remarks, McHenry emphasized the significance of this legislative effort: "Today, Congress will establish a new high-water mark for digital asset policy." He highlighted that this joint initiative between the Financial Services Committee and Agriculture Committee was not an overnight endeavor but involved extensive collaboration with subcommittees, working groups, stakeholders, and members from various ideological backgrounds.

"Last July, we passed the bipartisan Financial Innovation and Technology for the 21st Century Act, or FIT21, out of our respective committees," McHenry stated. He added that each step in this process has set a new standard and expressed optimism about achieving a broad bipartisan vote to implement FIT21's consumer protections and regulatory framework.

McHenry pointed out current challenges within the regulatory landscape: "The SEC and the CFTC are currently in a food fight for control over this asset class." He argued that FIT21 would resolve these issues by establishing clear rules and strong guardrails for Americans engaging with digital assets.

"At its core," he continued, "FIT21 applies time-tested consumer protections to ensure the 20 percent of Americans who engage with the digital asset ecosystem can do so safely."

McHenry concluded by urging his colleagues to support FIT21: "We can establish the next high-water mark for digital assets. I urge my colleagues to support consumer protection, innovation, and American leadership by voting for FIT21."

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