Author: Todd
The full name of FIT 21 is very shocking, it is called "21st Century Financial Innovation and Technology Act", which has just been officially passed by the US House of Representatives.
It was a Republican-led proposal, but many Democrats also supported it, so it passed the House of Representatives.
An important mission of the FIT 21 proposal is to stipulate which items are under the jurisdiction of the SEC and which items are under the jurisdiction of the CFTC.
In the past, one of the pain points of Crypto regulation in the United States was that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) were regulating cryptocurrencies at the same time, which was doubly strict and implied a struggle for regulatory power.
This is a relief for many project owners because the SEC has stricter management and 5,000 employees; in comparison, the CFTC is more lenient, after all, they only have 700 employees.
The project owner would definitely prefer to be recognized as a commodity rather than a security. So how should it be divided and who should manage it?
The FIT 21 proposal believes that:
1. The project owner has no direct control
2. The project owner holds no more than 20% of the tokens/voting rights
As a practitioner in the crypto industry, I think this idea has its merits, and it can also force and encourage project parties to move towards decentralization as soon as possible. Otherwise, if all of them are high FDV + low circulation, it will be extremely centralized.
What’s also a little funny is that I think it’s possible that $ETH happens to be <20%, while $SOL is probably just greater than 20%.
At present, many projects claim to be three-step:
- Initial stage - Centralization
- Progressive stage - Introducing community governance and decentralization
- Perfect stage - fully decentralized
However, many projects remain in the first stage forever. If this proposal is fully passed, this forced effect may promote many truly meaningful "decentralized applications".
Of course, I have no say. The House of Representatives has passed it, and now it's up to the Senate to decide.
In addition, the White House’s statement does not seem to like this proposal, but it did not say that it would be rejected directly. Biden has the right to reject it. The chairman of the SEC also disagrees.
In addition, there are some details in FIT 21 that are worth paying attention to.
For example, it points out that as a commodity, public offering is allowed, with several requirements:
1. Valuation below 75M
2. Retail investor participation is less than 10%
For example, it is still emphasized as always:
"We have a chance to determine whether the next generation of the internet will be designed by Americans"
This American-style speech is very vivid?
