According to a report by The Block, investment bank TD Cowen stated that a cryptocurrency market structure bill called the “21st Century Financial Innovation and Technology Act” (FIT21) may not have a chance to become law in this Congress, but the bill will set the stage for the work of U.S. lawmakers next year.
This Republican-led bill takes a comprehensive approach to regulating the entire cryptocurrency market and shifts more responsibilities to the Commodity Futures Trading Commission (CFTC). The bill is expected to be voted on in the House at the end of this month.
FIT21 is unlikely to pass in the Senate, with Democratic Congresswoman Maxine Waters opposing the bill, and Senate Banking Committee Chairman and Democratic Senator Sherrod Brown remaining silent on the issue. However, TD Cowen wrote:
TD Cowen added that the vote on the FIT21 bill may also reveal how Democrats and Republicans view key issues such as anti-money laundering and investor protection, and they expect the bill to receive unanimous approval in the House.
The upcoming bill to be voted on differs slightly from the original version, mainly technical corrections. One change includes the addition of Majority Whip Tom Emmer’s “Clarity in Securities Act,” which aims to clarify the classification of digital assets and create a new definition for tokens that fall between commodities and securities.
Trump’s election does not necessarily mean maintaining a position
U.S. presidential candidate Donald Trump expressed support for cryptocurrency in a recent event last week. However, TD Cowen stated that if Trump wins in this year’s presidential election, it is unclear whether he will maintain this supportive stance. The investment bank believes Trump could become a “complicating factor” in the future.
At the time, Trump stated in response to questions from attendees that “due to hostility towards cryptocurrency, cryptocurrency is leaving the United States.” He expressed his desire to prevent this situation and mentioned, “If you support cryptocurrency, you better vote for Trump.”
TD Cowen stated: