Combine Chief Investment Officer: FIT 21 passing the House of Representatives is a positive sign, but it would be best if it could be rejected in the Senate

Keegan Toci, chief investment officer of Combine Capital, said on X: "My views may not be popular with the market, and FIT 21 is best rejected in the Senate." Keegan explained that Congress' vote to repeal SAB 121 and the SEC's concession to the spot Ethereum ETF are real regulatory victories for the crypto industry because these measures can avoid illogical excessive intervention. FIT 21 is different. Spot commodity and currency markets are basically unregulated. The CFTC's responsibility is to regulate derivatives related to these markets (not spot), but the FIT 21 proposal invites the CFTC to unnecessarily expand their regulatory scope, which is an agency with fewer resources than the SEC and a poor record in crypto enforcement actions. At the same time, the SEC still retains the ability to regulate some digital assets. In addition, there are huge loopholes in the coverage of DeFi in the FIT 21 bill, and there are many regulatory uncertainties. Keegan added that the two parties agreed that a new regulatory framework for cryptocurrencies needed to be built, which was a positive sign, especially since 71 Democrats chose to cross party lines to vote in favor, but FIT 21 itself was not the framework we wanted, so if it failed to pass the Senate vote, there was no need to feel anxious. Earlier, the U.S. House of Representatives had voted to pass the FIT 21 bill.