As the House of Representatives prepares for a crucial vote, Graham Steele, a former Treasury official, criticizes the Financial Innovation and Technology for the 21st Century Act (FIT 21), designed to regulate the digital assets industry.
Steele, aiming for the Federal Deposit Insurance Corporation (FDIC) Chair position, questions FIT 21’s effectiveness in addressing current financial tech challenges. Critics argue that the bill’s light-touch approach may overlook investor protections and market stability, especially concerning Big Tech’s role.
Despite support from digital asset firms like Coinbase and Kraken, concerns linger over potential legal loopholes and impacts on shareholder rights. Democrats Maxine Waters and David Scott oppose FIT 21, citing risks to established securities laws and market stability.
An internal email leak reveals worries about safe harbor provisions potentially enabling fraud and market manipulation. Lawmakers plan to consult the SEC for further insights.
The debate reflects broader discussions on crypto regulation’s political dimensions. Galaxy Investment Partners’ CEO Mike Novogratz warns against politicizing crypto regulations, urging a bipartisan approach.
FIT 21’s fate hangs on these debates, highlighting the intricate balance between fostering innovation and ensuring regulatory safeguards in the digital asset landscape.
