Nancy Pelosi Backs Republican FIT21 Crypto Bill: Report

Former Speaker of the United States House of Representatives Nancy Pelosi is reportedly supporting the Republican-led crypto bill, the Financial Innovation and Technology for the 21st Century Act (FIT21).

Pelosi — now speaker emeritus and no longer in the Democratic Party leadership — may support the bill, which could hit the House floor for a vote on May 22, American Politics Magazine reported on May 21, citing sources familiar with Pelosi's thinking.

FIT21 explains how the Commodity Futures Trading Commission and the Securities and Exchange Commission divide jurisdiction over crypto assets.

If passed, the bill would change the 90-year-old Hawaii test — the legal standard for determining what assets are securities — and would leave crypto largely outside the SEC's control.

FIT21 has been welcomed by the crypto industry, with many saying it will clean up the currently clouded regulatory framework for digital assets.

Mark Hayes, a senior policy analyst on fintech with Americans for Financial Reform, told American Prospect: “The bill provides what the industry has wanted for some time: a regulatory system largely led by the CFTC, which is more suited to the issue. industry”

If Pelosi supports the bill, she will be up against Democrats Maxine Waters and David Scott, both of whom oppose the bill but leaked emails show they will not whip House Democrats' opposition to a vote.

Pelosi's support of a pro-crypto bill is the latest warm-up to crypto from Democrats, with some analysts suggesting the SEC U-turn on spot Ether (ETH) fund approvals is another effort to sway support from pro-crypto voters.

Related: Crypto Companies Behind FIT21 Bill Approaching US House Vote

However, financial reform groups and anti-crypto Democrats argue that the bill would overturn decades of financial regulations to benefit the crypto industry.

“This isn't about endorsing crypto, it's about trying to address the threat of promises from super PACs,” Hayes said.

The crypto industry has contributed to super PACs – political action committees – that are soliciting unlimited funds to support pro-crypto candidates in the upcoming US elections.

Opposition Democrats like Sen. Elizabeth Warren and financial reform groups see crypto as a threat as it plays an increasingly important role in this year's elections.

On May 21, North Carolina Representative Willie Nickell asked lawmakers to support FIT21 to stop the SEC from “turning cryptocurrency regulation into a political football.”

Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have Final Comments?