Breaking Crypto News – Understanding the Significance of the FIT21 Act in the Digital Age
Breaking Crypto News – The first step toward a legal framework for digital assets was taken on May 22, when the Financial Innovation and Technology for the 21st Century Act (FIT21) was put to a vote in the U.S. House of Representatives. Significant factors that impacted this historic bipartisan cryptocurrency measure were the Ripple v. SEC case, Judge Torres’ summary decision, and the backing of the XRP community, which included legal professionals.
The most significant cryptocurrency measure to date, H.R. 4763, a bill introduced in the US House FIT21, will safeguard consumers and offer legislative clarity regarding the regulation of digital assets. The crypto measure, which is supported by Republicans, has gained significant attention in light of this year’s election. According to US House Ranking Member Maxine Waters, the bill is unfit for purpose and might lead to a lot of loopholes. The crypto law was criticized by Democrats. In the meantime, if the FIT for the 21st Century Act passes the House, the White House will announce that it will not threaten to veto it.
Gary Gensler May Be Opposing FIT21 Because of His Stance Against Ripple
The Ripple v. SEC litigation, Judge Torres’ ruling in the case, and the XRP Army‘s unwavering push for clarification, according to CryptoLaw, a startup of Deaton Law Firm, have all contributed to the development of the bill. The crypto law includes a part that tries to make clear how digital assets sold in accordance with an investment contract are treated.
A digital asset sold or transferred or intended to be sold or transferred pursuant to an investment contract is not and does not become a security as a result of being sold or otherwise transferred pursuant to that investment contract,
the crypto bill
In the Ripple v. SEC litigation, Judge Torres upheld this, ruling that while offers and sales of the token to institutions are considered securities, the token itself is not, unlike programmatic sales by exchanges. In order to make the current securities law more applicable to emerging technologies, the XRP community asked for changes. According to CryptoLaw, SEC Chair Gary Gensler is against the FIT21 because he wants to keep contesting Judge Torres’ summary ruling.
FAQ
What is the Crypto FIT21 Bill?
In order to foster digital asset innovation in the US, the Financial Innovation and Technology for the 21st Century Act (FIT21) offers the kind of strong, tried-and-true consumer protections and regulatory certainty that are required.
Which Democrats Voted for FIT21?
71 Democrats, among them California Representative Nancy Pelosi, a former speaker of the house, voted in favor of the bill.
Why Does the XRP Army Keep Fighting?
The fervent proponents of XRP feel that Ethereum was strangely given a pass by the SEC while Ripple was unfairly singled out for securities crimes.
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