US House Passes FIT21 Crypto Bill As Coinbase Lauds Move Towards Clear Regulation

Updated: 23 May 2024

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The US House of Representatives approved the FIT21 crypto bill in a historic vote that is a step towards giving the crypto industry what it’s long demanded: clear regulation of digital assets.

The FIT21 (Financial Innovation and Technology for the 21st Century Act) crypto bill aims to provide a robust regulatory framework for the digital asset industry. But current US President Joe Biden’s administration has openly opposed it, arguing that it lacks the necessary protection for crypto investors and consumers.

“Thank you Congress— FIT21 is real progress,” said Paul Grewal, chief legal officer at crypto exchange Coinbase. ”71 House Democrats just joined Republicans to defeat the scape goating, fear mongering and ignorance of fellow legislators who refused to legislate.”

Democrats Cross Party Lines To Support FIT21 Crypto Bill

FIT21 marks the first time a major crypto-related bill has cleared one of the chambers of Congress. This was after the bill recorded a favorable 279-136 vote, with some Democrats crossing party lines to support it.

Overall, 71 Democrats and 208 Republicans voted in favor of the bill, while 3 Republicans and 133 Democrats were against it.

Rep. Josh Gottheimer (D-N.J.), who was one of the Democrats who supported the bill, called it “well-reasoned, thoughtful and bipartisan legislation.” He also argued prior to the vote that FIT21 is “fit to become law if we work together.”

Biden Votes Against New Crypto Bill

As expected, Biden voted against the bill, but didn’t say that he’d veto it.

Historic vote today on the FIT21 bill in the House of Representatives, that will finally start to create some clear rules to regulate crypto (if it becomes law).

Americans want to know their representatives are protecting their rights to use crypto, creating clear rules to…

— Brian Armstrong (@brian_armstrong) May 22, 2024

The Biden administration has developed a reputation for its anti-crypto stance, with many questioning the motives behind the administration’s perspective of the industry.

“Historic vote today on the FIT21 bill in the House of Representatives, that will finally start to create some clear rules to regulate crypto (if it becomes law),” said Coinbase CEO Brian Armstrong in a May 22 post on X.

The FIT21 bill now progresses to the US Senate. Its future is still unclear as it moves on to this next phase, since there is no counterpart bill. Despite the victory yesterday, the bill still has a long way to go before the proposed oversight can be successfully implemented.