The House of Representatives’ cryptocurrency bill could be the answer to America’s regulatory soul-searching. The ball is now in the Senate’s court

Americans have embraced digital assets. The recent Cryptocurrency Adoption and Sentiment Report found that digital asset ownership in the United States has increased from 30% in 2023 to 40% in 2024. This makes sense. Digital assets are providing greater financial inclusion and empowering millions of Americans, but it is up to Congress to act.

The U.S. House of Representatives has already risen to the occasion by passing a strongly supported bipartisan bill that would protect consumers, improve economic mobility, foster innovation, and maintain American leadership. Financial Innovation and Technology for the 21st Century Act (FIT21) updates U.S. securities laws that were designed long before today’s technological advances. As digital assets continue to evolve, FIT21 assigns defined responsibilities to the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It also creates the tailored frameworks that will enable this sector to thrive in U.S. markets.

With the rise in U.S. homeownership, FIT21’s robust consumer protections are a much-needed safeguard. The bill separates retail and institutional funds, provides risk disclosure, expands bankruptcy protections, and addresses conflicts of interest. This transparency will help regulators and consumers identify and address fraud before it becomes a problem. FIT21 will also make it harder for bad actors to launder money and finance terrorism, and its cybersecurity standards will help prevent attacks on U.S. financial infrastructure.

At the same time, FIT21 promotes innovation in the U.S. digital asset market by clarifying the rules of the game for the sector. Current rules are confusing and sometimes redundant. The resulting uncertainty pushes U.S. innovators to look offshore and penalizes smaller companies that struggle to manage compliance costs and conflicting rules. This has prompted major economies such as the European Union, the United Kingdom, Singapore, Japan, South Korea, the United Arab Emirates, Brazil, and Australia to open their doors to these innovators.

Passing this comprehensive digital asset legislation is not just important for the companies themselves, it’s important for our economy and for American leadership in a foundational technology. In 2018, 40% of U.S. developers were working on Web3. By 2023, that number has fallen to less than 26%, according to one study Electric Capital Cryptocurrency Developer Report 2023.

The ball is now in the Senate’s court. By passing FIT21, Congress would ensure the long-term stability of the digital asset market, ensuring a safer and more inclusive investment environment for ALL consumers. At the same time, it would solidify our position as a global leader in the digital economy. Senators, let’s get FIT21 across the finish line.

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