Home Community Insights House Financial Services Committee Approves Fit Act and Blockchain Regulatory Certainty Act

House Financial Services Committee Approves Fit Act and Blockchain Regulatory Certainty Act

House Financial Services Committee Approves Fit Act and Blockchain Regulatory Certainty Act

The House Financial Services Committee has recently approved two bills that aim to foster innovation and regulatory clarity in the blockchain and fintech sectors. The bills are the Financial Technology Protection Act (FIT Act) and the Blockchain Regulatory Certainty Act.

The FIT Act, introduced by Rep. Ted Budd, would establish an independent Financial Technology Leadership Council to combat the use of fintech for illicit purposes, such as money laundering and terrorism financing.

The council would also provide rewards for whistleblowers who report such activities. Additionally, the FIT Act would create a Fintech Innovation Fund to support the development of tools and programs to protect U.S. consumers and businesses from fintech-related threats.

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The Blockchain Regulatory Certainty Act, introduced by Rep. Tom Emmer, would provide a safe harbor for blockchain service providers who do not take control of consumer funds, such as node operators and miners. The bill would prevent such entities from being subject to state money transmitter laws, which are often inconsistent and burdensome for the emerging industry.

The bill would also clarify that blockchain service providers are not money transmitters under the Bank Secrecy Act, unless they conduct transactions on behalf of another person.

Both bills have received bipartisan support and endorsement from various industry groups, such as the Chamber of Digital Commerce, Coin Center, and the Blockchain Association. The bills are expected to advance to the House floor for a vote, and then move to the Senate for further consideration.

The approval of these bills by the House Financial Services Committee is a positive sign for the blockchain and fintech sectors, as it shows that lawmakers are willing to work together to create a conducive environment for innovation and growth.

The bills also demonstrate that Congress recognizes the potential benefits of blockchain technology for enhancing security, efficiency, and transparency in various domains, such as finance, trade, health care, and governance.

By providing regulatory certainty and protection for blockchain service providers and fintech innovators, the bills could foster more investment, research, development, and adoption of these technologies in the U.S. and beyond.

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