Former Treasury Official Graham Steele Gets Pushback On FIT21 Take After DIFA Petition Criticism

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Julia Smith

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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May 21, 2024

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Former U.S. Treasury official Graham Steele is receiving backlash after he took to X Monday morning to scrutinize support for the Financial Innovation and Technology for the 21st Century Act (FIT21) ahead of its likely vote on Wednesday.

Steele’s X post came in response to a social media petition created by Digital Innovation For America (DIFA) supporting the bill, claiming that “the best way to fight Big Tech is with Blockchain technology.”

X Users React After Graham Steele Shares Stance On DIFA FIT21 Petition

Calling the written request “pretty sneaky,” Steele noted that the highly-anticipated crypto bill does not include a prohibition on “Big Tech.”

“This petition about the FIT 21 Act uses progressive framing, claiming that the bill fights against “‘Big Tech,’” Steele said. “FIT 21 actually creates a light-touch regulatory framework for crypto, largely outside securities laws.“

🚨NEW: Former Treasury official Graham Steele throwing some shade at FIT 21 which the House is set to vote on tomorrow.

Steele is reportedly on the short list to replace Gruenberg as @FDICgov Chair. https://t.co/nsAkJYE8mB

— Eleanor Terrett (@EleanorTerrett) May 21, 2024

Consisting of organizations such as Amazon, Apple, and Meta, some members of the crypto community feel that standard “Big Tech” companies’ top-down structure may at times stand in stark contrast to blockchain’s traditionally decentralized nature, seemingly prompting social media backlash to Steele’s take on DIFA’s petition.

“Poor take,” one X user replied. “Educate yourself about the tech and what is happening here.”

“I would argue this is fighting back against big tech,” another alleged. “Blockchain networks are better for consumers than corporate networks.”

“You are making this a partisan issue and alienating millions of young, enthusiastic voters who want freedom to innovate,” a third claimed. “Decentralized crypto threatens ‘Big Tech’ – they are fighting against it! We hoped you would be different.”

Martin Gruenberg’s Replacement And A House Vote On FIT21

Steele’s post came amid a turbulent 24 hours for the FDIC, with Chair Gruenberg announcing he would resign from his position in light of sexual harassment, discrimination, and general misconduct concerns.

In a statement on Monday, White House Deputy Press Secretary Sam Michael claimed Biden would announce Gruenberg’s replacement “soon,” with recent reports suggesting that Steele may make the cut to take over the position.

The federal corporation has previously warned about the potential risks associated with crypto-assets pertaining to banking organizations.

Meanwhile, the House is gearing up for a full floor vote on FIT21, which is scheduled for Wednesday.

Backed by several key industry leaders in the crypto space, a successful vote on the bill could prove critical in establishing a robust regulatory framework with increased freedom for digital asset operators across the United States.