Yahya 
According to the sources, the former United States House of Representatives Speaker Nancy Pelosi is considering support for the Republican led Financial Innovation and Technology for the 21st Century Act (FIT21). The American political magazine U.S. The American Prospect has revealed that Speaker Emerita, Nancy Pelosi, might support the bill which may be brought to the House for a vote on May 22.
The Changing Tide in Cryptocurrency Regulation
The primary objective of FIT21 is to resolve the ambiguity regarding the jurisdictions of the CFTC and the SEC on crypto assets. If enacted, the bill will also amend the Howey test that has been in existence for 90 years, a legal framework that defines securities, thus limiting the SEC’s authority on crypto. This bill has been received positively within the crypto industry and has been considered as a way to demystify the currently murky legal framework surrounding digital assets.
Mark Hays, a senior policy analyst on fintech with Americans for Financial Reform, remarked, “The bill delivers what the industry has sought for some time: a regulatory structure primarily overseen by the CFTC – an agency that has been much more friendly to the industry.”
Democratic Divide
This is a shift from the opposition of the bill by leading Democrats such as Maxine Waters and David Scott. However, it was revealed through hacked emails that they will not impose an anti-party line. This action by Pelosi is in line with what has been seen as Democrats leaning towards embracing cryptocurrencies with some observers suggesting that a change of stance by the SEC on approvals of spot Ether funds is aimed at capturing the votes of pro-crypto voters.
Still, financial reform groups and anti-crypto Democrats claim that FIT21 could eliminate years of financial rules to promote the crypto sector. Hays elaborated on the political angle, saying, “It is not about endorsing crypto but about mitigating the risk of pledges from super PACs.”
The crypto industry has indeed used Super PACs, which can collect as much money as needed to support favorable candidates in the next U.S. election. Prominent Democrats including Senator Elizabeth Warren regard these developments as dangerous due to crypto’s increasing participation in the current elections.
As cited on May 21, North Carolina Representative Wiley Nickel urged his colleagues to fund FIT21 so that the SEC would not “weaponize” cryptocurrency regulation.