The US House of Representatives will vote on a new bill — the Financial Innovation and Technology for the 21st Century Act, or FIT21 — that would set up a regulatory framework for the crypto market.

Cryptocurrencies bitcoin (BTC-USD) and ethereum (ETH-USD) are moving higher on this news as the Securities and Exchange Commission (SEC) also approaches a deadline for possible approval on an ether ETF.

Yahoo Finance Reporter Jennifer Schonberger provides the latest updates on the crypto legislation and what it may mean for digital assets as a whole.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan.

Video Transcript

Bitcoin and Ethereum are rallying this week as we've just heard as lawmakers vote on new crypto legislation.

Yahoo Finance's Jennifer Schonberger is here with more details.

Hi, Jen, good afternoon, Julie.

It's great to see you and a watershed moment for the crypto industry.

The house is set to vote shortly for the first time on legislation that would create a comprehensive regulatory framework for digital assets.

The legislation being called the Financial Innovation and Technology for the 21st century Act or Fit 21 for short is one that house Financial Services chair Patrick mchenry has been pushing for the better part of a year and one that the crypto industry highly favors the legislation would establish the commodities futures Trading Commission as a leading regulator of digital assets.

There would be clear divisions for what the CFTC will regulate and what would fall under the purview of the SEC.

It would also establish consumer protections and bar the sort of co mingling of customer funds that played a role in the undoing of crypto exchange FDX.

Back in 2022 republican lawmakers see this legislation is creating much more clarity for the crypto industry, but most Democrats led by House Financial Services Committee ranking member Max Waters oppose this bill.

Waters warns the bill would effectively de regulate most crypto by removing them from the purview of the SEC.

Now, in a rare rebuke CC chair GG who is leveled numerous enforcement actions against the crypto industry slammed this legislation in a statement earlier today saying quote, it would create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk.

Now, this vote on F 21 is expected around 5 p.m. here in Washington.

This legislation is expected to pass in the house thanks to support from Republicans and a handful of Democrats, but support in the Senate remains dim at this point.

Uh mchenry told reporters late yesterday afternoon, he's hopeful that a strong vote tally in the house could galvanize the Senate to take a fresh look at this legislation.