House to Take Up Digital Asset Legislation

May 22, 2024

House GOP leadership is planning to call up a pair of crypto-focused bills for consideration this week, including legislation that would establish a regulatory framework for digital assets. Specifically, the Financial Innovation and Technology (FIT) for the 21st Century Act would, among other things: (1) provide the Commodity Futures Trading Commission (CFTC) with regulatory authority over digital assets as a commodity if the blockchain on which it runs is functional and decentralized; and (2) charge the Securities and Exchange Commission (SEC) with regulating digital assets as a security if its blockchain is functional but not decentralized. The measure is expected to pass the chamber today and could do so with bipartisan support. Notably, Democratic leadership is not whipping against the FIT for the 21st Century Act, and the White House issued a statement of administration policy (SAP) that expresses opposition but doesn’t threaten a veto.