1/n 
The United States has approved the FIT21 Crypto Bill with significant support from both parties in the House of Representatives. What does this mean for the future of crypto adoption? A short 🧵

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2/n
The FIT21 Crypto Bill, officially known as the Financial Innovation and Technology for the 21st Century Act, is a significant piece of legislation that aims to provide regulatory clarity for the cryptocurrency industry in the United States

4/n
Coinbase is accused of acting as an "unregistered broker, exchange, and clearing agency," while Binance faces allegations of subverting controls to allow high-value US customers to trade secretly, mismanaging customer deposits, and operating as a fraud or deceit.

5/n
Binance has already paid a fine of $4.3 billion to settle criminal money laundering charges levied by the U.S. DoJ while Coinbase has not been fined by the SEC, yet.

6/n 
Divides oversight of the digital assets industry between the CFTC and SEC - the CFTC will regulate commodities, the SEC - securities. Historically, the SEC has been more aggressive in enforcing securities laws, while the CFTC has been more lenient in its approach, focusing on anti-fraud and manipulation.

7/n
The collapse of FTX, once a major crypto exchange, highlighted the need for stronger customer protections in the digital asset industry. Now, exchanges are required to register with both the CFTC and SEC, separate customer funds, maintain records, and hold wind-down funds to protect customers.

8/n
Mandates stablecoin issuers to hold USD reserves equivalent to the amount of stablecoins issued to ensure a 1:1 value ratio. Huge win for companies like Circle, Tether, First Digital, Hex Trust, etc.

9/n
The right to self-custody digital assets in private wallets, providing an extra layer of security and protecting everyday consumers. Huge win for consumers everywhere.

10/n
While these steps mark significant progress for innovation and adoption of crypto assets, there are still challenges that lie ahead. The Basel Committee on Banking Supervision (BCBS) is an international committee that develops standards for banking regulation and supervision

11/n
They have established guidelines for the risk-weighted assets held by banks; equity, fixed income, crypto for example. Tldr - If a bank holds $1 of unbacked cryptoassets like Bitcoin and Ethereum, they need to hold $1250 worth of USD. This conservative capital treatment discourages banks from holding these assets

3/n
The bill establishes clear definitions for different categories of crypto assets to prevent conflicts between exchanges and regulators like the SEC. Coinbase and Binance are both getting sued for regulatory violations right now.