Former United States House of Representatives Speaker Nancy Pelosi is reportedly considering supporting the Republican-led crypto bill, the Financial Innovation and Technology for the 21st Century Act (FIT21).
According to U.S. political magazine The American Prospect, Pelosi, now Speaker Emerita and no longer in the Democratic Party leadership, may endorse the bill that could be voted on in the House on May 22.
FIT21 aims to clarify the division of authority over crypto assets between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
If enacted, the bill would revise the 90-year-old Howey test, which determines what assets are considered securities, and would largely remove crypto from SEC oversight.
The crypto industry has welcomed FIT21, as many believe it clarifies the currently ambiguous regulatory framework for digital assets.
Mark Hays, a senior policy analyst on fintech with Americans for Financial Reform, stated to The American Prospect that “the bill delivers what the industry has sought for some time: a regulatory regime mostly dominated by the CFTC, which has been far more accommodating of the industry.”
If Pelosi backs the bill, she would be opposing key Democrats like Maxine Waters and David Scott, who both stand against it.
However, leaked emails indicate they will not rally House Democrats to vote against it.
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Pelosi’s potential support for the pro-crypto bill is part of a broader trend among some Democrats warming to crypto, with analysts suggesting this may be an effort to gain support from pro-crypto voters.
For instance, a possible SEC U-turn on spot Ether fund approvals is seen as part of this effort.
Nevertheless, financial reform groups and anti-crypto Democrats argue that the bill would dismantle decades of financial regulations to favor the crypto industry.
“This is not about supporting crypto; this is about trying to navigate the threat of promises from super PACs,” said Hays.
The crypto industry has leveraged super PACs—political action committees that can raise unlimited funds—to back pro-crypto candidates in the upcoming U.S. elections.
Opposing Democrats, such as Senator Elizabeth Warren, view these super PACs as a significant threat as crypto gains influence in this year’s elections.
On May 21, North Carolina Representative Wiley Nickel urged lawmakers to support FIT21 to prevent the SEC from “turning cryptocurrency regulation into a political football.”
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