The wave of support for the Financial Innovation and Technology for the 21st Century Act, or FIT21, bill continues to grow among the United States crypto industry. More than 60 well-known crypto companies and organizations have signed a petition to encourage Congress to immediately pass legislation, which is seen as a new hope for the creation of clear and comprehensive crypto regulations.

The Crypto Council for Innovation (CCI), which consists of giants such as Coinbase, Gemini, and Andreessen Horowitz, is the initiator of this petition. They joined The Digital Chamber, Stand With Crypto, as well as other crypto investment companies such as Circle, Digital Currency Group, Galaxy, and well-known venture capitalist Andreessen Horowitz.

In letters of support addressed to members of Congress, dozens of these crypto entities called for the passage of FIT21 as a solution to end the regulatory uncertainty that has haunted the crypto asset industry. Without clear regulations, many US crypto companies and innovators are fleeing to other countries that are friendlier to digital financial innovation.

“FIT21 will provide much-needed legal certainty while ensuring consumer and investor protection. Without action from Congress, American innovators will continue to move abroad,” the letter said.

This bill proposed by Republican Representative France Hill would provide authority and guidance to the Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC) to clearly regulate the issuance and trading of crypto assets.

Apart from that, FIT21 will also regulate minimum capital requirements, protection of consumer funds, restrictions on conflicts of interest, and bankruptcy protection for crypto entities that will operate in this superpower country.

“The absence of a comprehensive legal framework has left the US lagging behind other major jurisdictions such as the European Union, UK, Singapore, Japan, and South Korea in developing the crypto economy,” added the bill’s supporters.

The trend of crypto companies moving outside the US is increasingly evident. Recently, the leading crypto exchange company in the US, Kraken, announced plans to relocate its headquarters to the European Union due to concerns about the antipathetic attitude of domestic regulators towards the crypto industry.

“There is increasing demand from US clients for crypto services, but all are waiting for legal certainty and better oversight,” said Kraken CEO Jesse Powell.

Responding to these concerns, SEC Chairman Gary Gensler stated that he would finalize crypto regulations this year. However, many crypto circles still doubt this because, so far, the SEC tends to be tough on crypto asset companies.

The conflict between US financial authorities and crypto companies is increasingly heating up, as evidenced by what happened between Ripple and the SEC, reinforcing the urgency of passing FIT21. If passed, this bill is considered a game changer that can end uncertainty as well as reaffirm the US’s position as the world’s mecca for financial innovation in the current crypto era.

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 Authors: RB & AL

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