The FIT 21 Act has been passed by the House of Representatives, which may reshape the Crypto Assets regulatory landscape.

Recently, the "21st Century Financial Innovation and Technology Act" (referred to as FIT 21) was passed in the U.S. House of Representatives. This bill, led by the Republican Party but with some support from Democrats, aims to clarify the regulatory boundaries of the Crypto Assets industry.

The core objective of FIT 21 is to clarify the responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the regulation of Crypto Assets. For a long time, there has been overlap in the regulatory authority of these two agencies, leading to uncertainty in the industry.

For crypto projects, this bill may bring positive benefits. The CFTC has a more relaxed management style compared to the SEC, and the number of employees is far fewer than that of the SEC. Therefore, many project teams prefer to be classified as commodities rather than securities.

FIT 21 proposed two key criteria for determining the ownership of Crypto Assets:

1. The project party does not have direct control over the assets.
2. The tokens or voting rights held by the project party shall not exceed 20%.

This standard may promote more projects to accelerate the decentralization process. In the past, many projects, although claiming to follow the "centralized start - introduction of community governance - complete decentralization" development path, often stagnated in the initial stage. The approval of FIT 21 may encourage project parties to more actively promote the development of truly decentralized applications.

It is worth noting that FIT 21 has also established public offering conditions for crypto assets classified as commodities, including a valuation of less than $75 million and a retail participation rate of no more than 10%, among others.

However, the future of FIT 21 still remains uncertain. The bill still needs to be reviewed by the Senate, and both the White House and the SEC Chairman have a reserved attitude towards it. President Biden has veto power, which may affect the final fate of the bill.

In addition, FIT 21 emphasizes the leading role of the United States in the design of the next generation of the internet, reflecting the strategic considerations of the United States in the global technology competition.

Regardless of the final outcome, the introduction of FIT 21 and its passage in the House reflect the U.S. government's focus on the regulation of the Crypto Assets industry and its efforts to seek a balance between maintaining innovation and strengthening oversight.