Congressional Letter Sent And ETFs Begin Approvals; FIT 21 Reverberates; Anti-CBDC Bill Passes

House, now Senate?

anti-CBDC bill – passage

Yesterday afternoon, The “CBDC Anti-Surveillance State Act” [H.R.5403] from Majority Whip Tom Emmer (R, MN) passed along nearly partisan lines on the House Floor. The bill effectively bans a Central Bank Digital Currency (CBDC) without Congressional authorization.

The bill passed 216-192. 22 members did not vote.

As expected, the bill with 165 Republican co-sponsors, was unanimously approved by House Republicans.

Three Democrats broke from Dem leadership and voted for the bill: Reps. Jared Golden (ME), Mary Sattler Peltola (AK) and Marie Gluesenkamp Perez (WA).

Visit the Clerk’s website for H.R. 5403’s complete tally.

Whip Emmer celebrated the passage in a tweet thread after the vote, “My legislation ensures that the United States’ digital currency policy remains in the hands of the American people so that any development of digital money reflects our values of privacy, individual sovereignty, and free market competitiveness.”

more tips:

    • View: “Full answer from [Treasury Secretary Janet Yellen] on a digital dollar ahead of this afternoon’s vote on Majority Whip Tom Emmer’s bill to ban the Fed from offering one.” – Brendan Pedersen, Punchbowl News on X

what you should know: This is an important message bill for House Republicans that likely won’t see the Democrat-controlled Senate Floor this Congress (let alone the White House). But, if votes fall the Republicans way in the November election, this bill could make it into law in the next Congress. Continue reading “Congressional Letter Sent And ETFs Begin Approvals; FIT 21 Reverberates; Anti-CBDC Bill Passes”

FIT 21 Passes House In Watershed Moment For Digital Assets; White House Gets Conciliatory

FIT 21 vote

FIT 21 – passage

The long awaited vote on the digital asset market structure bill known as “Financial Innovation and Technology for the 21st Century” or FIT 21 [H.R.4763] finally took place yesterday just before 6 p.m. ET.

Final tally 279-136 in favor of passage. 15 Members did not vote.

Signaling still more momentum for digital assets in Congress, Democratic support totaled 71 votes – well beyond the 21 House Dem votes recorded in favor of H.J.R.109 rescinding the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 two weeks ago.

Reps. Nancy Pelosi (D, CA), Adam Schiff (D, CA), Democratic Caucus Chair Pete Aguilar (D, CA) and House Minority Whip Katherine Clark (D, MA) were among the Democratic surprises to support the bill.

Republicans were nearly unanimous in support of FIT 21.

Reps. Andy Biggs (AZ), Nick Lalota (NY) and Matt Rosendale (MT) were the Republicans voting “no.”

Visit the Clerk’s website for FIT 21’s complete tally.

This was another victory for HFS Chair Patrick McHenry (R, NC) as well as House Ag Chair Glenn “GT” Thompson (R, PA).

more tips:

    • House Passes Financial Innovation and Technology for the 21st Century Act with Overwhelming Bipartisan Support –
    • Emmer Celebrates the Passage of the Securities Clarity Act in the FIT 21 Act –

FIT 21 – staff

    • “And [thanks] to those who did the heavy lifting, especially: Allison Behuniak, Tim Hite, and Paul Balzano.” – Rep. Warren Davidson (R, OH) on X
    • “Incredible bipartisan support for [FIT 21]!” (photo)- Tim Hite on X
    • “FIT21 was so bipartisan it could have gone on suspension, where 2/3rds of Members vote in favor.” – Michael Cameron on X

Continue reading “FIT 21 Passes House In Watershed Moment For Digital Assets; White House Gets Conciliatory”

FIT 21 Prepares For The House Floor Spotlight Today; Wells Notice Response By Uniswap

FIT 21 in the House Rules Committee

today’s vote – FIT 21

With an expected vote this afternoon on the Financial Innovation and Technology Act for the 21st Century [H.R.4763] or “FIT 21,” pro- and anti-crypto interests alike are wondering how many Democrats will be voting for the digital asset market structure bill. (We took a partial “crack at it” on Monday.)

Senior Republican committee staff told press yesterday that they are “hopeful” about Democratic support and pointed to the SAB 121 resolution vote where more Democrats voted for the resolution than many expected.

For a livestream of the vote this afternoon:

Industry observers are also hopeful that with enough Democratic support in the House, Senate Majority Leader Chuck Schumer (D, NY) may bring FIT 21 up for a vote on Senate floor – an unthinkable outcome prior to the Senate’s vote on the House’s SAB 121 resolution.

more tips:

Several U.S. House Democrats Petition Colleagues to Join Yes Side on Crypto Bill – CoinDesk

FIT 21 – presser

House Republican leaders held a press conference on FIT 21 yesterday.

House Financial Services (HFS) Chair Patrick McHenry (R, NC) and House Agriculture Chair Glenn “GT” Thompson (R, PA) were joined by their colleagues Rep. French Hill (R, AR), who is the Chair of the  HFS Subcommittee on Digital Assets, Financial Technology and Inclusion Subcommittee and Rep. Dusty Johnson (R, SD), who is chair of House Ag’s Commodity Markets, Digital Assets and Rural Development Subcommittee. Continue reading “FIT 21 Prepares For The House Floor Spotlight Today; Wells Notice Response By Uniswap”

Prometheum Intros Ether Securities As FIT 21 Vote Looms; Dem Leadership Leans On Caucus

Vote preparation

ETH ‘securities’

Prometheum rolled out its first Ether-as-a-security product on Friday according Fortune’s Leo Schwartz: “The custody launch appears to validate the position of [Securities and Exchange Commission (SEC)] Chair Gary Gensler, who has countered the broader crypto industry’s position by saying the existing regulatory regime is adequate and effective.” And yet, Gensler has never confirmed Ether is a security in the eyes of the SEC. Is this that moment? Read more.

The crypto platform was awarded a controversial special purpose broker-dealer (SPBD) license for crypto securities which purportedly adheres to SEC guidelines in May 2023.

what you should know: Big picture… this is the first of several potential salvos this week by anti-crypto advocates within Democratic leadership as they look to counter pro-crypto forces who are pushing for passage of the “Financial Technology and Innovation Act for the 21st Century” [H.R.4763] or “FIT 21” in the House this week. Ironically, the confusion created by Prometheum and its SPBD speaks to the need for a regulatory framework. FIT 21 looks to divide digital asset responsibilities between the CFTC and SEC.

Votes – FIT 21, CBDC

In preparation for House Floor votes this week, the House Rules Committee will hear about FIT 21 and Majority Whip Tom Emmer’s (R, MN) Central Bank Digital Currency (CBDC) bill known as “CBDC Anti-Surveillance State Act” [H.R.5403] at 4p.m. ET today.

There are 31 amendments listed for FIT 21 and a mere five for the CBDC bill. Continue reading “Prometheum Intros Ether Securities As FIT 21 Vote Looms; Dem Leadership Leans On Caucus”

FIT 21 And CBDC Floor Votes In House This Week; Ryan Selkis And Crypto Politics

Ryan Selkis

FIT 21 – floor vote

The Congressional calculus will be a bit different this week for the “Financial Innovation and Technology for the 21st Century Act” [H.R.4763] or “FIT 21.”

On Friday, Majority Leader Steve Scalise (R, LA) put FIT 21 – a.k.a. the digital asset market structure bill – on the House Floor calendar for a vote this week – looks like either Wednesday or Thursday.


The last two weeks saw the resolution rescinding the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121) sail through both Houses of Congress and land on President Biden’s desk for signature (more on this in a bit). Pro-crypto advocates have started feeling momentum for the first time since the President’s Executive Order in March 2022.

FIT 21 will most likely not be taken up by the Democrat-controlled Senate even though House Financial Services (HFS) Chair Patrick McHenry (R, NC) said last week he believes a strong showing for FIT 21 could tip the scales toward a vote in the Senate.

Regardless, the vote on FIT 21 will provide an opportunity to see how many House Democrats are willing to break with a Democratic leadership which has expressed only contempt for the bill.

more tips:

FIT 21 – Securities Clarity Act

Continue reading “FIT 21 And CBDC Floor Votes In House This Week; Ryan Selkis And Crypto Politics”

Senate Passes Bill Rescinding SEC’s Crypto Custody Rule, The President’s Desk Is Next

Senate votes on SAB 121

rescinding SAB 121 – passage

The Senate passed Rep. Mike Flood’s (R, NE) House Joint Resolution 109 rescinding the SEC’s Staff Accounting Bulletin 121, which effectively forbids the regulated financial system from offering custody products for digital assets. The final Senate vote was 60-38.

See the voting record on

As expected, the long-dormant Democratic “pro-crypto” support in the Senate came out of the woodwork to join all of the Senate’s voting Republicans. Among the 12 Democrats who voted for the resolution – and snubbed the threat of President Joe Biden’s veto – Senate Majority Leader Chuck Schumer (NY), Senate Finance Chair Ron Wyden (D, OH) and Sen. Kirsten Gillibrand (D, NY).

Notable among Democrats who voted “no” was Senate Agriculture Chair Debbie Stabenow (D, MI), who led the charge on the Digital Commodity Consumer Protection Act (DCCPA) prior to the implosion of FTX. That didn’t stop fellow Michigander and Democrat Sen. Gary Peters from voting “yes” on the resolution.

Sens. Robert Menendez (D, NJ) and Josh Hawley (R, MO) did not vote.

more tips:

    • U.S. Senate Votes to Kill SEC’s Crypto Accounting Policy, Testing Biden’s Veto Threat – CoinDesk

what you should know: Schumer and Wyden’s “yes” votes are the most telling within the Democratic caucus. As leaders in the Democratic Party, the two Senators are telling Democratic leadership – which starts in the White House – that they’re wrong.

This May 10 tweet from Messari’s Ryan Selkis was an indication on how yesterday’s vote would go: Schumer and Wyden aren’t buying at least some of Dem leadership’s strategy towards digital assets.

rescinding SAB 121 – reaction

Congressional Republicans took a victory lap once the Senate vote on rescinding SAB 121 was completed.

House Joint Resolution 109 sponsor Rep. Mike Flood (R, NE) said on X after the vote, “This is a landmark result for digital asset regulation. Both the House and Senate – including Majority Leader Schumer in the Senate – have delivered a clear, bipartisan message to the SEC that SAB 121 needs to go. It is clear there is overwhelming opposition to SAB 121, and I urge [POTUS] to reconsider his previous statement of intent to veto the resolution.” He urged President Biden to sign the resolution. Read his thread. Continue reading “Senate Passes Bill Rescinding SEC’s Crypto Custody Rule, The President’s Desk Is Next”

Crypto Votes In Maryland Senate Race; Rep. Nickel Wants To Save Joe Biden On Digital Assets

saving Joe Biden

pro-crypto platform wins?

On Tuesday, in a Democratic primary battle for the U.S. Senate seat held by retiring Sen. Ben Cardin in Maryland, Angela Alsobrooks trounced three-term Congressman Rep. David Trone by 12 points. She’ll meet former Maryland governor Larry Hogan in November. Read more.

Did crypto have an impact on the results?

Back in March, Politico chronicled the pro-crypto inclinations of both Alsobrooks and Trone and the potential influence of the crypto lobby in the race. See more.

But, Rep. Trone took what could be described as an “anti-crypto” stance last week by following Democratic leadership and it may have cost him. He voted against the House resolution which rescinded the SEC’s SAB 121. Trone had been leading the race just a month ago according to polls.

Consequently on Tuesday night, digital asset supporters on X were quick to proclaim Alsobrooks’ triumph a victory for the pro-crypto POV.

what you should know: There is no sign of spending by crypto lobbies on the Maryland Senate race –yet. See

letter – saving Joe Biden

A new Congressional letter from North Carolina Democrat Rep. Wiley Nickel asks Securities and Exchange Commission (SEC) Chair Gary Gensler to withdraw the regulator’s controversial guidance Staff Accounting Bulletin 121. SAB 121 and the custody of crypto.

See the letter.

Nickel’s reasoning for the withdrawal is novel. Continue reading “Crypto Votes In Maryland Senate Race; Rep. Nickel Wants To Save Joe Biden On Digital Assets”

Crypto Mixer Developer Gets 5 Years In Netherlands Court; SAB 121 Vote Today In Senate

developer found guilty

crypto mixer – developer convicted

Can a coder be convicted of money laundering even if all he did was the coding for a crypto mixing service?

In the Netherlands, the answer is “yes.” In the U.S., we’ll see.

Alexey Pertsev, one of the developers of Tornado Cash, a crypto mixer, was sentenced yesterday in a Netherlands’ courtroom to a prison term of five years and four months for laundering $2.2 billion in crypto assets. According to DL News, Judge Henrieke Slaar said, “Tornado Cash in its nature and functioning is a tool intended for criminals…The criminal user is fully facilitated.” Read more.

more tips: 

    • The ruling against Pertsev, in Dutch, is here.

crypto mixer – reaction

Coin Center’s Peter Van Valkenburgh commented on X, “I’m sad for Alexey and angry that the money laundering laws in the Netherlands have such a low threshold for intent, essentially mere negligence.”

Given there is a case currently pending  in U.S. courts against the developers of Tornado Cash brought by the Department of Justice, he added, “Nothing in this ruling should prejudice or carry weight in Roman Storm‘s case in the [Southern District of New York].” Read Van Valkenburgh’s tweet thread.

In early April, Coin Center, DeFi Education and Blockchain Association brought three separate briefs supporting the Tornado Cash developers.

Meanwhile, Treasury and Congress has taken note of the crypto mixer challenges.

Last October, Treasury proposed a new rulemaking “that identifies international Convertible Virtual Currency Mixing (CVC mixing) as a class of transactions of primary money laundering concern.” Read more. Continue reading “Crypto Mixer Developer Gets 5 Years In Netherlands Court; SAB 121 Vote Today In Senate”