2025: Fitzpatrick Voted To Disapprove An IRS Rule That Established
Reporting Requirements For Digital Asset Proceeds. In March 205,
Fitzpatrick voted for , "the bill that would provide for Congressional
disapproval of, and nullify, a December 2024 IRS rule related to gross
proceeds reporting by brokers involved in digital asset sales. The rule
imposed reporting requirements, beginning in 2027, on non-custodial
barkers who participate in the decentralized digital asset market. It
also required brokers to file information returns and provide payee
statements reporting gross proceeds from certain digital asset sales and
transactions." The vote was on passage. The House passed the bill by a
vote of 292 to 132. [House Vote 71,
3/11/25; Congressional
Quarterly, 3/11/25;
Congressional Actions, H.J. Res.
25]
2024: Fitzpatrick Voted To Establish A Regulatory Framework For
Determining Jurisdiction Of Digital Assets. In May 2024, Fitzpatrick
voted for , according to Congressional Quarterly, "the bill, as amended,
that would establish a federal regulatory framework for determining when
the Securities and Exchange Commission or the Commodity Futures Trading
Commission has jurisdiction over a digital asset, and it would create a
process for the regulation of a digital asset to move from the SEC to
the CFTC. Specifically, a digital asset would be subject to SEC
regulation if it is linked to a blockchain system that is not
decentralized (to be known as a 'restricted digital asset'), while
digital assets linked to blockchains on decentralized networks would be
subject to CFTC regulation (and be known as 'digital commodities'). The
measure would provide a process for a blockchain system to become
certified by the SEC as decentralized, at which point the blockchain
system, its market and intermediaries, and associated digital assets
would come under the jurisdiction of the CFTC. It would establish
registration requirements for intermediaries in digital markets under
both the SEC and the CFTC, generally setting requirements comparable to
those already in place under current law and regulation. It also would
require the SEC and CFTC to undertake rulemakings (including joint
rulemakings) to implement the bill's requirements. It also would
require the agency to collect fees from market entities to fund the
CFTC's new responsibilities for overseeing the digital commodities
market. As amended, it would apply a bank secrecy law to digital asset
and digital commodity entities. It also would require the Government
Accountability Office and the Treasury Department to submit various
reports to Congress." The vote was on passage. The House passed the bill
by a vote of 279 to 136. [House Vote 226,
5/22/24; Congressional
Quarterly, 5/22/24;
Congressional Actions, H.R.
4763]
Republican Supporters Of The Bill Stated Comprehensive Regulations
Would Encourage The Cryptocurrency Industry And Protect Consumers
While Democrat Opponents Stated That The Existing Regulations
Work. According to Congressional Quarterly, "McHenry and other
Republicans say creating a comprehensive regulatory regime for
cryptocurrency and its markets will encourage the industry and
protect consumers. Democrats who oppose the bill say the existing
system is working and the measure would create a legal framework
that undermines a decades-long test for defining securities."
[Congressional Quarterly,
5/21/24]
Democrat Opponents Of The Bill Had Concerns That Investors Would
Not Have Adequate Protections Under The Measure And That Certain
Securities Would Go Unregulated. According to Congressional
Quarterly, "House Democrats supporting the bill (HR 4763) broke with
colleagues who say they're concerned investors won't be protected if
the bill's provisions to hand much of digital asset oversight to
the nation's commodities regulator become law. House Financial
Services ranking member Maxine Waters, D-Calif. issued a lengthy
warning, saying language was added to the bill after it was marked
up that would allow some traditional securities to exist in a
'regulatory no-man's-land.'" [Congressional Quarterly,
6/4/24]
2024: Fitzpatrick Voted To Prohibit Regulation Of Spot Markets. In
May 2024, Fitzpatrick voted for , according to Congressional Quarterly,
"amendment no. 4 that would express the sense of Congress that nothing
in the bill should be interpreted to authorize any entity to regulate
any commodity, other than a digital commodity, on any spot market." The
vote was on the amendment. The underlying legislation established a
system of regulation of digital assets. The House adopted the amendment
by a vote of 225 to 191. [House Vote 225,
5/22/24; Congressional
Quarterly, 5/22/24;
Congressional Actions,
H.Amdt.922;
Congressional Actions, H.R.
4763]