Regulation
SEC’s Gensler criticizes cryptocurrency regulation bill ahead of vote
SEC Chairman Gary Gensler opposed the Financial Innovation and Technology for the 21st Century (FIT21) Act in a statement. statement Wednesday.
The bill, which has garnered support from key Republicans and major cryptocurrency companies, is expected to go to a vote in the House of Representatives, with its future in the Senate remaining uncertain.
Gensler’s criticisms center on the risk that the bill could undermine the SEC’s ability to protect investors and the integrity of U.S. financial markets by changing the classification of crypto assets and diminishing regulatory oversight.
“[FIT 21] “This would create new regulatory gaps and undermine decades of precedent in investment contract oversight, exposing investors and financial markets to immeasurable risks,” Gensler said.
The FIT21 Act, introduced in July 2023, aims to establish clear federal guidelines for digital asset markets and delineate the roles of the SEC and the Commodity Futures Trading Commission (CFTC) in regulating cryptocurrencies.
Gensler said the bill could erode the Howey test, a cornerstone in determining investment contracts, and allow crypto companies to circumvent SEC regulation by self-certifying their products as “decentralized” digital commodities.
Furthermore, the exclusion of cryptocurrency trading platforms from the definition of an exchange by the FIT21 law is considered by Gensler as a measure that could undermine investor protection.
The White House also issued a statement Wednesday opposing passage of the bill.
“HR 4763 in its current form does not adequately protect consumers and investors who engage in certain digital asset transactions,” the Executive Office of the President said. said Wednesday.
Number of views of the publication: 11,163