U.S. House of Representatives passes “FIT21” bill, but implementation will take years

U.S. Commodity Futures Trading Commission (CFTC) Commissioner Summer Mersinger told the Consensus 2024 conference that the coordination between regulators to implement the Financial Innovation and Technology for the 21st Century Act (FIT21) could take months or years. “Even if FIT21 is enacted, we expect there will be extensive coordination and potential delays before it is implemented. Do we think it will all be over once the president signs it? That's just the first step. It will take a long time to finalize the regulations.” ”Once FIT21 is enacted, regulators such as the SEC and CFTC will need to enact new rules. This includes drafting detailed regulations, soliciting public feedback, and making further revisions based on feedback.”

Meanwhile, U.S. Senator Cynthia Loomis and House Financial Services Committee Chairman Patrick McHenry sent a letter to President Joe Biden, asking him not to veto bipartisan legislation that would reverse accounting guidance on cryptocurrency custody obligations for heavily regulated financial companies, including banks, known as SAB 121. They emphasized that the bill was the result of a bipartisan vote in both the House and Senate.