White House Expresses Enthusiasm To Collaborate With Congress on Crypto Framework Bill

The Executive Office of President Joe Biden has issued a Statement of Administration Policy concerning H.R. 4762, the Financial Innovation and Technology Act of 2021 (FIT 21). 

This legislation seeks to establish clear guidelines for Bitcoin and other digital assets.

The Chamber of Digital Commerce, an advocacy group for the Bitcoin industry, has criticized the current U.S. regulatory environment, arguing that it creates uncertainty, drives businesses overseas, stifles innovation, and leads to job and investment losses. 

They assert that FIT 21 will resolve these issues by providing clear guidelines for the classification, trading, and regulation of digital assets, ensuring consumer protection.

Today, FIT 21 is expected to pass the House. Unlike a recent crypto-related bill that would permit financial institutions to custody Bitcoin and other digital assets and faced a veto threat from the administration, FIT 21 will not be subject to such a threat if it passes. 

The next step for the bill would be a Senate vote.

However, the Biden administration has expressed opposition to FIT 21 in its current form, citing a lack of adequate consumer and investor protections. 

The White House has indicated a willingness to collaborate with Congress to develop a more comprehensive and balanced regulatory framework for Bitcoin and other digital assets. 

The administration highlighted the importance of promoting responsible digital asset development and payment innovation to reinforce the United States' leadership in the global financial system.

Historically, the Biden administration has been critical of the Bitcoin and cryptocurrency industry.

Political considerations may also be influencing the administration's stance, as former President Donald Trump has recently shown support by accepting Bitcoin and cryptocurrency donations.