FIT21
A U.S. crypto market-structure bill that aims to clarify which digital assets are regulated by the SEC or CFTC and how crypto firms must comply.
FIT21 stands for the Financial Innovation and Technology for the 21st Century Act, a U.S. legislative proposal focused on creating clearer rules for digital asset markets. Its main goal is to define when a crypto asset should be treated more like a security under the Securities and Exchange Commission, or more like a commodity under the Commodity Futures Trading Commission. It also sets out compliance expectations for crypto exchanges, brokers, dealers, and custodians.
FIT21 matters because U.S. crypto regulation has often relied on enforcement actions and older financial laws that were not written for blockchain networks. A clearer framework could help projects, trading platforms, and users understand what disclosures, registrations, and protections apply. For example, a token sold to raise funds for a centralized project might face securities-style rules, while a token connected to a sufficiently decentralized network could fall under a commodities-style framework.
Other terms in Regulation & Tax
AML
Anti-money laundering rules and processes aim to stop criminals from using financial systems, including crypto platforms, to hide or move illicit funds.
BitLicense
A state license required for many virtual currency businesses that serve customers in New York.
CARF
CARF is an OECD framework for tax reporting and automatic exchange of information about crypto-asset transactions.
Crypto Tax Loss Harvesting
A tax strategy where investors sell crypto at a loss to realize a capital loss that may offset taxable gains, subject to local rules.