Nancy Pelosi Votes For Landmark Crypto Bill, Defies Longtime Adviser And Current SEC Commissioner Who Gave Thumbs Down For Bitcoin ETF

Author: Aniket Verma | May 23, 2024 05:26am

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.

71 House Democrats. Let that sink in— 71 House Democrats just joined Republicans to defeat the scape goating, fear mongering and ignorance of fellow legislators who refused to legislate. Thank you Congress— FIT21 is real progress.
— paulgrewal.eth (@iampaulgrewal) May 22, 2024

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.

Interesting side note here: Dem @SECGov Commissioner Jaime Lizárraga worked as @SpeakerPelosi's financial policy advisor for ten years.

Lizárraga has typically voted against crypto during his time at the SEC.

Pelosi voted in favor of crypto today. https://t.co/dojVYdxGlU
— Eleanor Terrett (@EleanorTerrett) May 22, 2024

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 (CRYPTO: BTC) 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.

Photo via Shutterstock

Posted In: $BTC