The US crypto regulation - What is FIT21 ?

FIT 21, a legislative plan to clarify the role of different regulatory agencies and to classify what is ultimately crypto Rep. Thompson, Glenn [R-PA-15] one year ago near. on May 22, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT 21) as a major step towards productive regulation of the crypto industry.

The FIT 21 The proposed legislation is the product of significant efforts by varied crypto stakeholders, including legislators, industry participants, and interested financial institutions. Crypto lobbyists pushed heavily for FIT 21 on Capitol Hill, and the bill was publicly supported by leading voices in the industry including Coinbase, The Block, and Digital Currency Group.

An overview of - FIT 21 separates digital assets into three categories: (1) digital commodities, (2) restricted digital assets, and (3) permitted payment stablecoins — but it only promulgates substantive guidance and regulation for the first two, the stablecoin act of 2025 will further address remittances legal guidance. Also, memecoins are likely to receive special treatment as digital collectibles.

FIT 21 allocates regulatory authority over digital commodities and the market participants who trade them to the U.S. Commodities Futures Trading Commission (CFTC); and by contrast, the bill designates regulatory authority over restricted digital assets to the U.S. Securities and Exchange Commission (SEC). The most notable change perhaps is how Liquid Crypto Funds or LCFs continue to participate in the ecosystem, in fact majority of the legacy crypto market makers like Genesis, BitMEX and Jump have ended that part of their operations completely. Decentralized Exchanges have continued to operated as before, however many have specific designation as private software solutions without any traditional capital funding rails.

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Bitcoin has continued to test good time value of money, with BTC presently trading at $ 84 845 [ year over year 33.45 % 🔺] reaching an new all tie high of $ 105,000 level, however more recently pairing those loses to on this spring weekend of 03/22/2025.

However, the so called Altcoins have seen significant underperformance with Ether token going down near 25 % 🔻over the past 12 months, and down as much as 33 % 🔻, since the mid summer Exchange Traded Fund launch likely due restricted liquidity of crypto assets as restricted digital assets have become securities.

Crypto reporting was pushed until 2026, currently the same tax laws would apply in the US as before.

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