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He pointed Paul Grewal, head of legal affairs at Coinbase, said that the Financial Innovation and Technology for the 21st Century (FIT21) Act is set to take effect within the next 48 hours. These statements come at a time when the Senate’s debate on the structure of the digital currency market is reaching its climax.
Direct market results are not just predictions; The regulatory clarity between the SEC and the CFTC currently represents a significant cost of managing the risks built into cryptocurrencies for institutions, and a reliable regulatory framework would address this.
For institutional market makers, registered investment advisors (RIAs), and hedge funds that have stayed away from investing in altcoins due to the threats of “unregistered securities”, Grewal’s brand is the most direct rule in months.
Crypto regulation has been slow since the GENIUS law established a system of stablecoins in 2025, but the broader market will remain difficult, with visible capital in the market and wide spread of the economy.
“Clarity is coming,” Grewal said bluntly, describing the current situation as the industry’s transition from an era of “regulation” to an era of regulation. This was done on purpose, as Coinbase was the most aggressive in pushing the FIT21 clause, and Grewal’s brand of public trust is as smart a move as it gets. When a company’s legal director announces a 48-hour window, the message to Senate negotiators is as strong as the message to the markets.
Important points:
- Grewal’s logo: Paul Grewal has publicly stated that FIT21 will see progress on the rules within 48 hours, which is the clearest statement from a major player in the current stage.
- What FIT21 means: The classification test, which determines whether digital assets fall under the jurisdiction of the SEC (like securities) or the CFTC (like stocks), is a central question in US law.
- The relationship between the SEC and the CFTC: After this rule, the full share of the tokens will be digital assets that are supervised by the CFTC, while the central issues will remain the protection of the SEC.
- The results of the market increase: Market makers and institutions that are currently avoiding altcoins will receive the next level, freeing up waiting funds.
- Observations: Senate Banking Committee meeting scheduled for April 2026; The stablecoin withdrawal must be completed by the end of the week to maintain the voting schedule.
What does FIT21 do and why is it important to resolve the conflict between the SEC and the CFTC?
FIT21’s main method is the “Decentralization Test,” a Howey-like test used primarily in digital currencies to determine whether a token represents a financial transaction under the jurisdiction of the SEC or a digital asset under the jurisdiction of the CFTC.
The law passed the House of Representatives by a vote of 279 to 136 in May 2024 with significant bipartisan support, but it was lost in the Senate due to disagreements over the provision of stablecoin returns, which became the main point of contention.
In practice, the law draws regulatory boundaries as follows: Assets issued by networks that are fully distributed – where no single issuer controls 20% or more of the issuance or development process – are classified as digital assets and are regulated by the CFTC.
Assets that fail these tests remain securities under the SEC’s jurisdiction. Section 202 of the act also exempts offerings of qualified digital assets from being registered as securities, provided that the issuers meet disclosure requirements related to sources, transaction history, and tokenomics, allowing token funds to be raised within the United States and not abroad.
For a platform like Coinbase, practical success is immediate; Having a definitive test on the distribution of shares means that the decisions to list the top 20 altcoins will no longer have open risks of litigation by the SEC. For institutional participants, section FIT21 ensures that compliance is not just a matter of personal preference to a particular event. This major change in quality, not just degree, is what will bring back market participation.
A note Coinbase expects to act on the FIT21 regulations within 48 hours appeared for the first time Cryptonews Arabic.
