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Crypto Lobby Eyes New Legislation Following Trump’s Election Win Following Donald Trump’s presidential victory and the establishment of a Republican majority in Congress, the crypto industry is gearing up for a legislative shift that could reshape U.S. crypto regulations. According to Decrypt, crypto advocates are now reconsidering support for the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill previously designed to define crypto regulations and set roles for the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). With renewed influence in Congress, crypto insiders are eyeing alternative legislation that could better align with the industry’s interests, particularly under a pro-crypto administration. The push for new legislation reflects the sector’s desire for clearer, more favorable regulations that address emerging technologies, stablecoins, and decentralized finance (DeFi) with fewer compromises.   Why the Crypto Industry is Reconsidering FIT21 The Financial Innovation and Technology for the 21st Century Act (FIT21) was initially introduced with bipartisan support to clarify the roles of the SEC and CFTC in regulating digital assets. However, industry leaders now feel that FIT21 falls short in several areas: Limited Protections for Key Assets: FIT21 does not fully address protections for assets like stablecoins and DAO (decentralized autonomous organization) tokens, which are integral to the evolving crypto ecosystem. The industry is seeking legislation that offers more comprehensive protections and regulatory clarity. Shift Toward Pro-Crypto Legislation: With a Republican-led Congress, the crypto lobby sees an opportunity to pursue legislation that aligns more closely with its interests. Industry insiders are hoping for a regulatory framework that supports innovation without restrictive measures that could stifle growth. Need for a Tailored Regulatory Framework: FIT21’s compromises were seen as necessary under a more divided Congress, but the new political landscape provides a chance to develop more favorable legislation. Many in…

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Filed under: News - @ November 7, 2024 10:26 am