Coinbase Chief Legal Officer Paul Grewal has signaled that the Financial Innovation and Technology for the 21st Century Act (FIT21) is poised for significant legislative movement within 48 hours, coinciding with critical Senate negotiations over crypto market structure reaching an inflection point. The bill's core mechanism involves a decentralization test - a 'Howey-style' framework specifically for digital assets to determine SEC or CFTC jurisdiction. Assets from sufficiently decentralized networks where no single issuer controls 20% or more of supply or development qualify as digital commodities under CFTC oversight. The Senate Banking Committee markup is targeted for April 2026, with stablecoin yield provisions remaining the primary friction point. For institutional participants, FIT21 passage would shift compliance from judgment calls to codified standards, potentially unlocking significant capital from regulated entities like pension funds that have been sidelined by jurisdictional uncertainty.
Coinbase CLO Predicts FIT21 Breakthrough: What It Means for Markets
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Crypto News
Friday, April 3, 2026·5 min read·Regulation
#FIT21#CFTC#SEC#institutional-adoption
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