The Breakdown 71 Democrats Break Ranks to Vote for Commonsense Crypto Regulation
May 23, 2024
Democrats surprise by supporting FIT21 Act, sparking debate on US crypto regulation. Analysis of bill's bipartisan backing and implications. Senate's pivotal vote discussed, along with concerns about proposed regulation bill impacting DeFi markets.
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Democrats Break Ranks on Crypto
- 71 Democrats joined Republicans, signifying a potential shift in the Democratic party's stance on crypto.
- This challenges Elizabeth Warren and Gary Gensler's influence on crypto policy.
FIT21 Act Overview
- The FIT21 Act clarifies when crypto tokens are commodities, not securities, based on network decentralization.
- It also assigns the CFTC to regulate spot crypto markets and implements consumer protections.
White House and Gensler's Reactions
- Gary Gensler opposed the bill, claiming it undermines financial regulation.
- The White House softened its stance, expressing willingness to work with Congress on crypto regulation.