Democratic Party members of the United States House of Representatives have received an email urging them not to vote against two upcoming pro-crypto bills, although they are strongly encouraged to do so.
The email, sent by Democrat Party leaders and obtained by Politico, revealed that there was no directive for members to vote against the Republican-led Financial Innovation and Technology for the 21st Century (FIT21) Act and the CBDC Anti-Surveillance State Act (H.R. 4763 and H.R. 5403, respectively).
Both bills have been viewed favorably by the crypto industry if passed. FIT21 would clarify the classification of cryptocurrencies as commodities or securities and largely entrust regulatory control to the U.S. Commodity Futures Trading Commission (CFTC). The bill has garnered support from the U.S. crypto industry and lobbyists, with 60 companies urging its passage in a letter to the house.
The CBDC Anti-Surveillance State Act aims to prevent the Federal Reserve from issuing a central bank digital currency (CBDC).
However, the email highlighted that Representatives Maxine Waters and David Scott hold strong opposition to FIT21, with Waters also opposing the CBDC act. A subsequent letter from the pair urged a vote against FIT21.
Democratic Party leaders expressed concerns about FIT21’s language, particularly regarding its impact on traditional securities markets and its potential to weaken investor protections and facilitate fraud and market manipulation.
Regarding the CBDC Anti-Surveillance State Act, Democrat leaders argued that prohibiting CBDCs could undermine the primacy of the U.S. dollar and hinder the Federal Reserve’s ability to conduct monetary policy, particularly concerning inflation.
The FIT21 bill is expected to undergo floor debate and potentially pass on Wednesday, May 22, according to Politico’s reporting.
May 2024, Cryptoniteuae
