Sources hint at Nancy Pelosi’s support for the FIT21 crypto bill

Former US House Speaker Nancy Pelosi may be supporting the Financial Innovation and Technology Act for the 21st Century (FIT21), a Republican-led crypto bill.

Pelosi may support the bill, which is currently on the verge of a vote on May 22, according to sources familiar with Pelosi’s approach.

Pelosi will be running against Democrats like Maxine Waters and David Scott, who oppose the bill. But a leaked May 20 email from Democratic Party leaders revealed that House Democrats would not be encouraged to vote against it.

The bipartisan bill aims to clarify cryptocurrency regulations in the United States and address long-standing market surveillance and consumer protection issues. It will define the responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

One of the most significant changes proposed in the bill is the redefinition of the SEC’s jurisdiction over crypto. This could be achieved by updating the 90-year-old Howey test to better suit the unique characteristics of digital assets, thus creating a clear distinction between digital commodities and securities.

FIT21 has been widely welcomed by the crypto industry for its role in improving the regulatory environment, primarily by delegating oversight to the CFTC, an agency known for its more lenient approach to the industry.

This change is in line with the industry’s preference for the CFTC’s more accommodating regulatory approach, which has long been a demand, according to Mark Hays, a senior policy analyst on fintech at Americans for Financial Reform.

At least eight Democrats in the House have pledged their support for the bill, including Reps. Wiley Nickel (D-C), Yadira Caraveo (D-Colo.), Jim Himes (D-Conn.), according to a recently released statement. .), Jasmine Crockett (D-Tex.), Ritchie Torres (DY), Darren Soto (D-Fla.), Josh Gottheimer (DN.J.) and Don Davis (D.C.).

Lawmakers believe that this bill “should not be a partisan issue” and rather an “important opportunity” to regulate the cryptocurrency market.

Rep. Nickel had previously called on lawmakers to support passage of the bill on May 21 to “prevent the next FTX.”