Crypto Coins
Senate has yet to vote on FIT21, but the bill's passage at the House last week is deemed a major milestone in the fast-evolving digital assets space. Traxer/Unsplash

KEY POINTS

  • He said the 279-136 passage of FIT21 is a major step "in these divided times"
  • McHenry also said some Senate members were "shocked" with the results of last week's vote
  • SEC Chair Gensler and the Biden government have expressed opposition to the bill

The House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) in an overwhelming 279-136 vote last week, and for House Financial Services Committee Chair Patrick McHenry, R-N.C., the milestone should be a "wake up call" to senators.

Speaking to Bloomberg TV Thursday, McHenry revealed that he has been hearing from Senate members how "they were shocked at the wide margin that we passed this bill." Notably, a staggering 71 Democratic representatives helped pass the proposed legislation.

"For us to pass that important bill – FIT21 – with a two-thirds vote of the House representatives in these divided times is a major statement," he said. "This should be a wakeup call for the Senate, that they need to get on with this," he added. He also noted that the bill should be passed before the November elections.

He also provided more details about FIT21, describing it as "a legal structure for the trading and ownership digital assets," and it "gives regulatory form to something that currently has no regulatory form."

McHenry went on to reveal that he has been collaborating with Rep. Maxine Waters, D-Calif., regarding a potential "stablecoin policy." However, the "Senate schedule" is what's been keeping a stablecoin policy bill from moving forward, he said.

The Republican lawmaker's comments came as the cryptocurrency community waits for Senate to vote on the proposed legislation. The Biden administration has said it "opposes" the bill's passage, arguing that FIT21 "in its current form lacks sufficient protections for consumers and investors who engage in certain digital asset transactions."

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler also expressed opposition to the bill, saying a regulatory framework would only "create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts."

Several GOP supporters of the bill have previously explained the importance of having a regulatory framework that provides the cryptocurrency industry with clarity on how they should go about with their business.

House Majority Whip Tom Emmer of Minnesota said FIT21 paves the way for giving Americans a "choice" of whether or not they need an "intermediary" for their financial transactions.

Meanwhile other Democrats have also talked about their opposition to the proposed bill. Rep. Brad Sherman of California said digital assets are "hidden money" that create a "competitor to the U.S. dollar."

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