WASHINGTON, D.C. – Congresswoman Erin Houchin (IN-09) is proud to announce the passage of two significant bills from the United States House of Representatives. Houchin helped lead H.R. 4763, the Financial Innovation and Technology for the 21st Century Act (FIT for the 21st Century Act), and H.R. 5403, the CBDC Anti-Surveillance State Act, which originated from the House Financial Services Committee and recently passed on the House floor.
These bills aim to provide regulatory clarity and consumer protection in the rapidly evolving digital financial landscape.
H.R. 4763 – Financial Innovation and Technology for the 21st Century Act – The FIT for the 21st Century Act (FIT21) establishes rules for digital assets supporting FinTech innovation while protecting consumers and the market. Under current law and the regulatory structure, the Securities Exchange Commission (SEC) may regulate digital securities, but no regulatory regime exists to oversee digital commodities. Nearly 70% of all digital assets are estimated to function as commodities, leaving a significant gap in consumer protection and oversight with these emerging technologies. FIT21 clarifies how the SEC should regulate digital assets that act as securities. It creates a new framework under which the Commodity Futures Trading Commission (CFTC) will regulate digital assets classified as commodities, provided they operate on functional and decentralized blockchains.
“Digital assets represent a significant evolution in the financial sector,” said Congresswoman Houchin. “The FIT for the 21st Century Act ensures a clear and adaptable regulatory structure that promotes innovation while safeguarding market integrity. By defining the roles of the CFTC and SEC, we provide much-needed clarity under which digital assets should be regulated by each agency, allowing innovators to build and develop new products while also providing consumer protections for purchasers of digital assets.”
H.R. 5403 – CBDC Anti-Surveillance State Act – This legislation aims to protect the privacy and freedoms of American citizens by prohibiting Federal Reserve banks from issuing or managing central bank digital currencies (CBDCs). The bill also restricts the Federal Reserve from utilizing CBDCs to implement monetary policy, protecting Americans against potential governmental overreach and surveillance. The CBDC Anti-Surveillance State Act supports House Republicans’ efforts to prevent the Fed from regulating “de-banking” type policies that target consumers and business entities based on political ideology or other factors. In addition, H.R. 5403 protects the privacy of American citizens from government surveillance.
“Financial liberty and privacy are cornerstones of America, yet the Biden Administration continues to threaten these fundamental rights,” Congresswoman Houchin stated. “This legislation ensures that digital dollars cannot be used as a government surveillance or control tool. It prevents the United States from joining autocratic nations like China who have embraced the CBDC as a means of strengthening surveillance on citizens.”
Both pieces of legislation reflect Congresswoman Houchin’s commitment to fostering financial innovation while protecting individual freedoms and ensuring a fair, transparent regulatory environment.
“As we navigate the future of digital finance, we must establish frameworks that encourage technological advancement and uphold the values that define our great nation,” Congresswoman Houchin concluded.
