Nancy Pelosi, former Speaker of the U.S. House, is reportedly backing the FIT21 crypto bill, a significant piece of legislation aimed at modernizing cryptocurrency regulations. Set for a vote on May 22, this Republican-led bill, supported by some Democrats, seeks to clarify the roles of the SEC and CFTC in digital asset oversight. A key feature of FIT21 is its proposal to update the 90-year-old Howey test, making it a historic move towards distinguishing digital commodities from securities more clearly. This adjustment aligns with the crypto industry’s preference for the CFTC’s lighter regulatory touch, a stance that has garnered bipartisan support from at least eight House Democrats.
This legislation represents a crucial opportunity for comprehensive cryptocurrency market regulation, potentially preventing future market crises.
