According to reports, the former House Speaker is thinking about endorsing the Republican crypto bill. The report says that Nancy Pelosi, the former speaker of the House, might support the crypto bill sponsored by Republicans. The Financial Innovation and Technology for the 21st Century Act (FIT21) is the name of the bill.
Pelosi, who is no longer leading the Democratic Party as Speaker Emerita, might back the legislation. On May 21, the House floor could consider voting. The report cites sources familiar with Pelosi’s thinking.
FIT21 would clarify the division of power over crypto assets. It would specify the functions of the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The 90-year-old Howey test would change if approved. A legal basis for identifying whether assets are securities is this test. Furthermore, the law would lessen SEC regulation of crypto.
The cryptocurrency sector has embraced FIT21. A lot of people think it makes sense to finally have a clear regulatory framework for digital assets.
Senior fintech policy expert Mark Hays of Americans for Financial Reform told The American Prospect that:
“the bill delivers what the industry has sought for some time: a regulatory regime mostly dominated by the CFTC, which has been far more accommodating of the industry.”
Pelosi would be opposing ranking Democrats David Scott and Maxine Waters if she backed the plan. Leaked emails reveal that although they both oppose the bill, they won’t pressure House Democrats to vote against it.
The latest sign that the Democratic Party is coming around to crypto is Pelosi’s purported endorsement of the pro-crypto measure. Analysts speculate that the SEC may reverse course on approving spot Ether (ETH) funds. This appears as an extra attempt to persuade people who embrace crypto.
Debate Over Crypto Regulation Intensifies
Democrats opposed to crypto and financial reform organizations claim the plan will repeal a decade’s worth of financial restrictions. They think it’s intended to help the crypto sector.
Hays stated:
This is not about supporting crypto, this is about trying to navigate the threat of promises from super PACs.
The crypto sector has used super PACs, which can raise an infinite money. Their goal is to back crypto-friendly candidates in the next US election.
Financial reform organizations and opposing Democrats like Senator Elizabeth Warren view them as threats. This is because crypto will have a bigger role in this year’s elections.
Representative Wiley Nickel of North Carolina asked lawmakers to support FIT21 on May 21. He wishes to stop the SEC from making the regulation of crypto more political.
