The FIT Act Is the Most Comprehensive Crypto Regulation Ever Voted on by Congress

Last month’s votes by the House Financial Services Committee and House Committee on Agriculture on the Financial Innovation and Technology for the 21st Century Act (FIT Act) was a milestone for the digital assets industry.

While not yet perfect, the FIT Act is the most comprehensive piece of legislation for the digital assets industry voted on by our elected officials, and marks the first time crypto-focused regulatory bills have been voted out of any committee in the House or Senate.

Kristin Smith is CEO of the Blockchain Association, the Washington D.C.-based trade association representing more than 100 of the industry’s leading companies.

Even more encouraging, 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.

Last month’s 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.

These votes highlighted the need for – and growing momentum driving – bipartisan collaboration to address the complexities and potential of cryptocurrencies effectively. Over and over again, committee members rightly lamented the ineffectiveness of the current regulatory regime, and by association, the hyperactive enforcement campaign by the U.S. Securities and Exchange Commission (SEC).

We must keep this traction going as emerging technologies such as blockchain and AI continue to advance.

These important votes also come at an important moment for the crypto industry. From the collapse of Do Kwon’s algorithmic stablecoin to Sam Bankman-Fried’s spectacular fall from grace after the implosion of FTX, the crypto ecosystem has suffered in the eyes of the public, among investors and in Washington D.C. circles.

Collaboration between the industry and policymakers is crucial

However, as of late, the reaction from many in Congress has been one of increasing awareness and acknowledgment that the digital asset industry cannot simply be…