The Financial Innovation and Technology for the 21st Century Act (FIT Act) was a milestone for the digital assets industry, as it was the most comprehensive piece of legislation for the digital assets industry voted on by our elected officials. Kristin Smith, CEO of the Blockchain Association, noted that the FIT Act garnered vital bipartisan support, making it a symbol of cooperation and recognition that this sector is too important for the status quo regulatory regime to stand.
The message from policymakers was clear: Crypto is here for good and Congress, not regulators, will determine an appropriate regulatory framework for the industry. The cryptocurrency industry is too significant to be subjected to the whims of partisan politics, and last week’s vote signaled a shift by lawmakers to come together to develop smart regulations that promote innovation and ensure consumer protection.
However, the industry must continue to prove the world-changing use cases of the technology, such as instant money transfers around the world, artist and creator empowerment, and serving the unbanked and underbanked. The FIT Act is a significant step forward in acknowledging the importance of the digital assets industry, yet there is still work to be done.
Organizations such as Blockchain Association remain ready to serve as valuable resources. Collaboration between the industry and policymakers is crucial to strike the right balance between innovation and regulation. With the collective expertise and insights from both sides, future legislation will be thoughtfully crafted to accommodate the ever-changing dynamics of the digital asset space, cementing the United States as the world-leader in innovation.