Regulation
White House Opposes FIT21: Targeting Crypto Regulation
As the House of Representatives prepares to vote on the Financial Innovation and Technology for the 21st Century (FIT21) Act today, the White House’s position on the bill has become important. The administration has opposite the bill, raising concerns but without issuing a veto threat.
The Biden administration is willing to work with Congress to develop a comprehensive and balanced regulatory framework for crypto assets.
Biden Admin Rejects FIT21, Open to Crypto Regulation
In its statement Wednesday, the administration highlighted several critical issues related to FIT21. The main concern was the bill’s perceived need to provide more sufficient protections for consumers and investors.
“The Administration opposes passage of HR 4763, which would affect the regulatory structure for digital assets in the United States,” the statement said.
Learn more: How does regulation impact crypto marketing? A complete guide
The White House’s opposition to FIT21 is significant as the House prepares for the vote. If it becomes law, FIT21 would significantly strengthen regulatory oversight of crypto spot markets and digital commodities, such as bitcoin. It also introduces a secondary market trading mechanism for digital products initially offered under investment contracts.
Bipartisan support amid debate
Despite opposition to FIT21, the White House strongly wants to work with Congress. The statement further highlights the administration’s intent to leverage existing authorities to foster an environment conducive to innovation while protecting consumers and investors. Senator Cynthia Lummis commented on the bipartisan support for the bill.
“There is a bipartisan majority in both houses of Congress in favor of crypto. The future is very promising,” she said. declared.
FIT21 has sparked controversy. Rep. Maxine Waters criticized the bill during a meeting of the House Rules Committee. Waters argued that FIT21 would expand the price of raw materials Futures contracts resources of the Trade Commission (CFTC), which weakens its enforcement capabilities. She also noted that with its larger staff, the Securities and Exchange Commission (SEC) would be better positioned to oversee the sector.
Learn more: 7 Best Crypto Exchanges in the USA for Trading Bitcoin (BTC)
SEC Chairman Gary Gensler also voiced his opposition to FIT21. Gensler warned that the bill would create new regulatory loopholes by ignoring the Howey test, a key legal standard for determining whether an asset qualifies as an asset. security.
FIT21 faces an uncertain future in the Senate. Many top lawmakers in the Democratic-controlled Senate have shown little interest in the bill. Investment bank TD Cowen recently suggested that FIT21 could not become law this Congress.
Political dynamics may also impact the fate of the bill. There have been rumors that the Biden administration will pay more attention to crypto, given its potential influence on voters in the upcoming presidential election. Presumptive Republican presidential candidate Donald Trump has taken steps in support of crypto, including accepting crypto campaign donations.
The debate over FIT21 highlights the complexity of regulating the crypto market. As the House prepares to vote, the administration’s position reflects the importance of developing a regulatory framework that ensures market stability while encouraging technological advancements in the crypto industry.
Disclaimer
In accordance with the Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and current information. Readers are, however, advised to independently verify the facts and seek professional advice before making any decision based on this content. Please note that our Terms and conditions, Privacy PolicyAnd Disclaimer have been updated.