FIT21 could force crypto to choose between decentralization and securities in the future

“If U.S. President Joe Biden does not veto the Financial Innovation and Technology for the 21st Century (FIT21) Act, which passed the House of Representatives, cryptocurrencies (that are not classified as commodities or securities) will have to choose between decentralizing or being regulated as securities,” Jamie Coutts, a cryptocurrency market analyst at Bloomberg Intelligence, writes in X. “Given that many protocols are decentralized but are actually centralized, there could be selling pressure on many cryptocurrencies. Given that many protocols are centralized under the guise of decentralization, we could see selling pressure in many cryptocurrencies in the future.”

Earlier, the U.S. House of Representatives passed the FIT21 bill. The bill, which would give the CFTC the authority to regulate the cryptocurrency market and classify 70% of all c