Nancy Pelosi, former Speaker of the U.S. House of Representatives and a Democrat, is considering supporting the Republican-led cryptocurrency bill, the "21st Century Financial Innovation and Technology Act" (FIT21). Analysts suggest that the Democratic Party, led by President Biden, is attempting to revitalize support from crypto voters.
On Tuesday (May 21), the American political magazine The American Prospect cited sources familiar with Pelosi's thinking, stating that Pelosi, currently serving as Honorary Speaker and no longer in Democratic leadership, might support the "21st Century Financial Innovation and Technology Act." This bill could be put to a House vote later on Wednesday.
The "21st Century Financial Innovation and Technology Act" aims to clarify how the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) will allocate authority over crypto assets.
If passed, the bill would also amend the 90-year-old Howey Test, effectively removing most cryptocurrencies from SEC oversight.
CoinTelegraph reported that the "21st Century Financial Innovation and Technology Act" has been welcomed by the crypto industry, with many claiming it clears up the currently murky regulatory framework for digital assets.
Mark Hays, Senior Policy Analyst for Financial Technology at the financial reform organization Americans for Financial Reform, stated: "This bill accomplishes what the industry has sought for some time, a regulatory regime primarily led by the CFTC, which is more accommodating to the industry."
If Pelosi supports the bill, she will oppose Democrats Maxine Waters and David Scott, who are against the bill. However, leaked emails indicate that they will not whip House Democrats to vote against it.
Pelosi's potential support for the pro-crypto bill marks the latest enthusiasm from Democrats towards cryptocurrency.
Earlier this week, some analysts suggested that the U.S. stance on an Ether spot ETF might do a 180-degree turn, ultimately leading to approval.
"This is another effort to influence the support of pro-crypto voters," the article pointed out.
However, financial reform groups and anti-crypto Democrats believe the bill would undo decades of financial regulation, benefiting the crypto industry.
Hays stated: "This is not about supporting cryptocurrency but addressing threats promised by super PACs."
The cryptocurrency industry uses super PACs to raise unlimited funds to support pro-crypto candidates in the upcoming U.S. elections.
Anti-crypto Democrats, such as Senator Elizabeth Warren and financial reform groups, view this as a threat since cryptocurrency is playing an increasingly significant role in this year's elections.
On Monday, North Carolina Representative Wiley Nickel called on legislators to support the "21st Century Financial Innovation and Technology Act," to prevent the SEC from turning crypto regulation into a "political football."
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