The FIT21 bill (H.R. 4763) was just passed by the House. I still have to do more research on it but my current sentiment is that it’s a win for crypto.
My understanding of the bill:
- It will prevent FTX-style robberies by regulating CEXs as brokers.
- It sets a definition for what a decentralized digital asset is.
- It makes DeFi, validators/miners out of reach of the SEC or CFTC.
- It guarantees the right to self-custody.
- It introduces the concept of investment contracts for digital assets.
I think the biggest changes we can expect from this bill is that some less decentralized blockchains are going to either get rid of some of their tokens supply either by selling or burning them so they aren’t considered a security.
I’m not sure what the implications of the investment contract provision will be. The dems are claiming that it will lead to the collapse of the financial system.
IMO, this bill is the win for:
- Digital assets that meet the decentralization test
- The DeFi ecosystem
- Validators/Miners
- Self-custody
- Keeping devs and innovation in the US 🇺🇸
It is a loss for:
- SBF-style fraudsters
- Potentially TradeFi although I’m unclear on that one
The bill doesn’t mention anything about privacy or mixing technology but it’s probably good for those since the right to self-custody is made clear.
The bill: https://rules.house.gov/sites/republicans.rules118.house.gov/files/RCP_H4763_xml (003).pdf
I’m interested on different analyses of this bill. They like to sneak shit in this stuff that will be applied to the proles but let the big boys skate. I might do it myself I don’t know, I’ll reserve judgment for now, but I follow a rule of thumb, always be suspicious of everything the government does, especially when it’s widely touted as a win for the people.
I hear you, this is my first take based on a cursory reading of the bill. I must say I was skeptical before looking into it but I was surprised to see that the bill seems to insulate DeFi/devs/miners/self-custody from TradeFi regulations which is really the opposite of what the Warren anti-crypto army wanted (by considering everybody a broker).
Also, I saw that Aaron Day is saying it is a bad bill because it would enable CBDC but I’m still waiting for a more detailed analysis from him. Regardless of this bill, I’m not sure we can stop a CBDC launch so we may as well protect what makes crypto crypto then we’ll have a fair competition against CBDC.
I would not be so quick to celebrate. Remember the “house” is filled with parasites and banker controlled pedophiles and this is most likely a bait and switch.
If a territory wants to suppress cryptocurrency, it first creates regulations that make suppression possible.
I’m still looking for an in-depth analysis of this bill (which still has to go through the Senate) but in the meantime here is my cynical take on it:
Here is the best breakdown on FIT21 that I’ve read so far: https://www.davispolk.com/insights/client-update/crypto-market-structure-bill-draws-closer-floor-vote-house
