US lawmakers seek to clean up crypto regulation food fight [Video]

The US House of Representatives on Wednesday adopted a bill that would create a new legal framework for digital currencies, in a move cheered by crypto supporters but opposed by consumer groups who say it fails to protect investors.

The Republican-backed Financial Innovation and Technology for the 21st Century Act — known as FIT21 — would split responsibility for cryptocurrency regulation between the Securities and Exchange Commission and the Commodities Futures Trading Commission.

The bill would boost the regulatory authority of the CFTC, and weaken the SEC’s oversight of digital assets. It is opposed by the SEC and faces a steep climb in the Democratic-controlled Senate.

Defenders of digital currencies have argued that regulators are stuck in the past and applying rules unfit to oversee the explosion in the popularity of crypto.

House Republicans say FIT21 would beef up oversight of the rapidly-growing digital assets space, strengthening transparency and accountability …