Biden Administration Opposes Current FIT21 Crypto Bill

President Joe Biden’s administration will neither support nor veto the Financial Innovation and Technology for the 21st Century Act (FIT21).

In an official statement dated Wednesday, the Executive Office of the President expressed opposition to the current iteration of the FIT21 Act should the U.S. House of Representatives vote in favor of it in the coming hours. The statement highlighted concerns that the FIT21 Act, as it stands, would affect America’s regulatory framework for digital assets. Despite this opposition, the Biden administration emphasized its willingness to collaborate with policymakers to develop clear crypto legislation.

“The Administration is eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets,” the statement read.

White House statement on FIT21 Act crypto bill

Long Road Ahead

The White House’s stance somewhat aligns with U.S. SEC Chair Gary Gensler, who has also voiced opposition to FIT21. Gensler repeated concerns from crypto industry stakeholders, stressing a need to push investor protection policies over bootstrapping business models built around nascent technology.

The House Agriculture Committee Republicans took issue with Gensler’s take, as FIT21 garners bipartisan support ahead of a forthcoming vote.

@GaryGensler’s last-minute foray into congressional action on the bipartisan #FIT21 legislation underscores the political nature of SEC’s position. This can’t continue. Americans deserve more protections in the digital asset markets. We look forward to passing #FIT21 today.

The FIT21 Act’s journey does not end with a House vote. If passed, it will proceed to the U.S. Senate for further consideration. Legal expert Scott Mason from Holland & Knight noted that the support of major Democrats could be crucial during this stage.

“Democrat leadership is not whipping against it, so if it gets 50 or 75+ Dems to vote for it, it sends a better signal to the Senate to act,” Mason stated in a private note.

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