1/ The US House is voting on FIT 21 today.
Biden just said he wants comprehensive crypto regulations.
Time for another explainer thread.
+ What is FIT21?
+ Why is this bill important?
+ What does FIT21 tell us about shifting political alliances and power in the US?
🧵👇
Biden just said he wants comprehensive crypto regulations.
Time for another explainer thread.
+ What is FIT21?
+ Why is this bill important?
+ What does FIT21 tell us about shifting political alliances and power in the US?
🧵👇
2/ What is FIT21?
FIT21 is the "Financial Innovation and Technology for the 21st Century Act"
You can read it here:
FIT21 is the 1st bill that tries to comprehensively define how the crypto market should be regulated in the USrules.house.gov/bill/118/hr-47…
FIT21 is the "Financial Innovation and Technology for the 21st Century Act"
You can read it here:
FIT21 is the 1st bill that tries to comprehensively define how the crypto market should be regulated in the USrules.house.gov/bill/118/hr-47…
3/ FIT 21 has a few key areas and provisions:
+Delineates when SEC or CFTC has jurisdiction
+ Consumer protections around transparency and disclosures for promoters and endorsers
+ Prohibits agencies from preventing people from using crypto
+ Asks Treasury to study stablecoins
+Delineates when SEC or CFTC has jurisdiction
+ Consumer protections around transparency and disclosures for promoters and endorsers
+ Prohibits agencies from preventing people from using crypto
+ Asks Treasury to study stablecoins
4/ FIT21 tries to define terms around decentralized systems & when networks are sufficiently decentralized to no longer be a security.
It introduces a process to certify assets as sufficiently decentralized and be labeled commodities.
This is a huge breakthrough.
It introduces a process to certify assets as sufficiently decentralized and be labeled commodities.
This is a huge breakthrough.
5/ The SEC has to review applications and respond in 90 days
If the SEC determines an asset operates without a controlling entity, the asset is a commodity & CFTC has jurisdiction
For people skeptical of the SEC this is not ideal. But having clear rules is a BIG step forward
If the SEC determines an asset operates without a controlling entity, the asset is a commodity & CFTC has jurisdiction
For people skeptical of the SEC this is not ideal. But having clear rules is a BIG step forward
6/ So why does all of this matter? Why is FIT 21 important?
The #1 thing I have learned after grinding on this for 3.5 years:
Progress in politics and legislation is imperfect & happens in spurts.
When you can get some of what you want turned into actual law, FUCKING TAKE IT.
The #1 thing I have learned after grinding on this for 3.5 years:
Progress in politics and legislation is imperfect & happens in spurts.
When you can get some of what you want turned into actual law, FUCKING TAKE IT.
7/ FIT21 is not perfect. But it gets us one step closer.
Not only do we win to fight another day, we put points up on the board. We demonstrate to the entire world that we know how to get things done.
And we may not get another opening for years.
Not only do we win to fight another day, we put points up on the board. We demonstrate to the entire world that we know how to get things done.
And we may not get another opening for years.
8/ FIT21 does not have a corresponding bill in the Senate. So it won't make it into law yet.
Today's vote is performative. But power is 80% performative.
But who is performing? For whom? What does their performance tell us?
The performance tells you where the world is headed.
Today's vote is performative. But power is 80% performative.
But who is performing? For whom? What does their performance tell us?
The performance tells you where the world is headed.
9/ This vote tells us:
+ Repubs owned this issue from the get go
+ Dems are worried about losing votes, money, & losing the issue to Repubs
+ Dems are breaking away from Elizabeth Warren
+ The President is breaking away from Warren
Power centers are shifting. Crypto is winning.
+ Repubs owned this issue from the get go
+ Dems are worried about losing votes, money, & losing the issue to Repubs
+ Dems are breaking away from Elizabeth Warren
+ The President is breaking away from Warren
Power centers are shifting. Crypto is winning.
10/ @PatrickMcHenry, @RepFrenchHill, @GOPMajorityWhip and other have been championing crypto for the Republicans for years.
They have positioned phenomenally for the power shift as 50m American crypto holders come of age.
This is tremendous validation of their strategy.
They have positioned phenomenally for the power shift as 50m American crypto holders come of age.
This is tremendous validation of their strategy.
11/ If you look at who is flipping in the last 6 months, it's moderate Dems.
Similar to Dems who voted to overturn SAB121 like @RepRitchie, @RepMoulton, @RepSlotkin we now have people like @RoKhanna, Jim Himes, @RepWileyNickel voting alongside their Republican colleagues.
Similar to Dems who voted to overturn SAB121 like @RepRitchie, @RepMoulton, @RepSlotkin we now have people like @RoKhanna, Jim Himes, @RepWileyNickel voting alongside their Republican colleagues.
12/ A year ago, this would have been a fast veto from the President
Today, the White House wants to help clarify crypto regulations & will not veto
A 180° turn
Let that sink in.
The WH staffers who have pulled their colleagues along to this point deserve tremendous praise.
Today, the White House wants to help clarify crypto regulations & will not veto
A 180° turn
Let that sink in.
The WH staffers who have pulled their colleagues along to this point deserve tremendous praise.
13/ What does this all mean? What does it signal?
It signals that Moderate Dems have realized that crypto matters.
That there are enough people here who will swing the vote.
That there is enough money to help swing elections.
And that the Dems are losing these voters.
It signals that Moderate Dems have realized that crypto matters.
That there are enough people here who will swing the vote.
That there is enough money to help swing elections.
And that the Dems are losing these voters.
14/ Elizabeth Warren was the center of gravity on tech and crypto regulation.
Because she has cost the party votes and donations, in advance of 2024, she has lost a lot of power.
Dems have now signaled they do not want to follow Warren into oblivion as a party
Because she has cost the party votes and donations, in advance of 2024, she has lost a lot of power.
Dems have now signaled they do not want to follow Warren into oblivion as a party
15/ In 2025, the Senate will appoint new commissioners at SEC, CFTC, FDA, FTC, etc.
If Warren has power, expect people like Gensler.
If Warren does not have power, we get people like @HesterPeirce
If Warren has power, expect people like Gensler.
If Warren does not have power, we get people like @HesterPeirce
16/ We need to encourage and empower the moderates.
After FIT21 voting, send an email to your representative if they voted in favor and thank them.
If they voted against, ask them why.
Find your rep here:
standwithcrypto.org/politicians
After FIT21 voting, send an email to your representative if they voted in favor and thank them.
If they voted against, ask them why.
Find your rep here:
standwithcrypto.org/politicians
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