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US House Passes Historic Pro-Crypto Bill: What Does It Mean for Solana?

Despite opposition from the White House and SEC Chair Gary Gensler, the bill's passage marks the first major legislative win for the crypto industry in years.

May 23, 2024 by Sheldon Cooper

In a significant victory for the cryptocurrency industry, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) on Wednesday, a comprehensive bill aimed at establishing a regulatory framework for digital assets. This development could have profound implications for Solana (SOL), which the SEC declared a security last year along with dozens of other crypto tokens, leading to its removal from platforms like Robinhood.

The bill, which garnered bipartisan support with a 279-136 vote, marks a pivotal moment in the ongoing struggle to define the regulatory landscape for cryptocurrencies. It proposes to grant the Commodity Futures Trading Commission (CFTC) oversight over digital assets considered commodities, potentially removing them from the SEC's purview. This could significantly impact ongoing cases, such as the lawsuit against Coinbase alleging the sale of unregistered securities.

The bill passed despite opposition from the White House and SEC Chair Gary Gensler, who argued it could undermine existing securities regulations. However, in a departure from previous veto threats, President Biden issued a statement expressing a willingness to work with Congress on a digital asset framework.

For Solana, the passage of FIT21 could represent a major turning point. If the bill becomes law, SOL's classification as a commodity could pave the way for its relisting on major platforms and alleviate regulatory concerns. This potential shift in regulatory oversight could reshape the industry, offering greater clarity and potentially fostering innovation.

The bill now heads to the Senate, where its fate remains uncertain. However, its passage in the House represents a significant milestone, signaling a growing recognition of the need for clear and comprehensive regulation of the rapidly evolving crypto market.

The passage of FIT21 marks the first major legislative win for the crypto industry in years and could set a precedent for future regulation. While the road to enactment remains uncertain, this development signals a potential shift in the regulatory landscape, offering a glimmer of hope for Solana and other cryptocurrencies navigating the complex regulatory terrain.

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