Regulation
White House rejects FIT 21, calls for fair crypto laws
The White House opposed the Financial Innovation and Technology for the 21st Century Act (CUT 21) due to a lack of adequate investor protection. The move comes even after the bill has the potential to influence new legislation on the cryptocurrency market.
The statement also highlights the administration’s willingness to work with Congress to establish a better legal framework for digital assets.
White House rejects FIT 21
The US administration has officially expressed its opposition to FIT 21 invoice, which seeks to reform the rules of the digital asset market. The White House noted that the current version of the bill falls short in terms of protecting consumers and investors in digital asset transactions.
“HR 4763 in its current form is inadequate in terms of protecting consumers and investors,” the administration stressed. This position argues for a broader legislative strategy, in which it would be possible to include all existing financial authorities within the spectrum of balanced legislation.
Unlike previous occasions where the White House threatened to veto other legislative initiatives, the administration has not ruled out further discussions regarding FIT 21. This approach signals continued efforts to improve the regulation of digital assets, thereby strengthening the position of states -United in the global financial space. .
Position of SEC Chairman Gary Gensler
Simultaneously, the chairman of the Securities and Exchange Commission, Gary Gensler, expressed equally intense criticism of the FIT 21 law, pointing out that it would open new loopholes in the regulation of the cryptocurrency market and traditional financial markets. Gensler’s concerns include the possibility of creating a loophole for companies to escape strict SEC regulation by simply declaring that they are decentralized.
He said this could reverse progress made in financial regulation over the past decades and make investors more vulnerable to risks.
Gensler’s statement also highlights the possibility of using self-certification to circumvent securities laws and asserts that bad actors will be able to use it for fraudulent activities. This strong stance indicates that the SEC continues to uphold high standards of investor protection in the digital asset space.
Meanwhile, Graham Steele, a former Treasury official, opposed the regulation, calling it a light-touch regulatory framework for cryptocurrencies.