Former House Speaker Nancy Pelosi (D-Calif.), who voted in favor of the bill laying down clear regulations for the cryptocurrency industry, went against the stand of her former financial adviser and incumbent SEC Commissioner Jaime Lizárraga.
What Happened: In a massive win for the digital asset market in the U.S., the House of Representatives passed landmark legislation establishing a regulatory framework for the industry.
The bill led by Republicans received bipartisan support, with as many as 71 Democrats voting in favor, including Pelosi.
Following the passage of the Financial Innovation and Technology for the 21st Century Act, also known as FIT21, Pelosi said in a statement, "The digital asset industry needs clearer rules of the road and the federal government needs stronger enforcement authority in order to ensure the responsible development of this emerging technology."
"Millions of Americans own cryptocurrency. American companies are the cutting edge of global financial technology. Many jobs in my Bay Area community are dependent on this industry," the influential Democrat emphasized.
Interestingly, Pelosi's stance contradicted that of Lizárraga, who served as her senior financial adviser for 10 years.
Why It Matters: Lizárraga has backed SEC Chair Gary Gensler‘s position that most digital asset tokens are securities and serve as unregistered market participants.
He was also one of two SEC commissioners who voted against the approving spot Bitcoin BTC/USD ETFs earlier this year.
Lizárraga criticized the crypto industry after the FTX collapse, saying it has worsened the financial market's underlying weaknesses.
However, Pelosi’s vote for friendlier cryptocurrency legislation and strong support for the industry’s interests reflected a diverging stance.
This also signaled an evolving perspective on the investment class in the country. With a growing crypto demographic–the highest in absolute numbers and the third-highest by population share–lawmakers may be inclined to take a more accommodating approach toward digital assets.
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