Regulation
White House Won’t Veto Crypto Bill, But Seeks to Strengthen Consumer Protections
In a surprising turn of events, the White House announced today that it will not veto the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill that would have a significant impact on the way digital assets are managed. regulated in the United States.
What happened: The administration has emphasized its eagerness to work with Congress to develop a comprehensive and balanced regulatory framework for digital assets.
In a statementThe administration has expressed opposition to HR 4763, citing the lack of sufficient protections for consumers and investors engaged in digital asset transactions.
“The administration looks forward to working with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, that will promote responsible digital asset development and payment innovation and will help strengthen U.S. leadership in the global financial system. “, we read in the press release.
Administration position on FIT21
Although it is opposed to the passage of HR 4763, the White House has indicated that it will not veto the bill. Instead, the administration has expressed its intention to continue working with Congress to improve the legislation.
“HR 4763 in its current form does not have sufficient protections for consumers and investors who engage in certain digital asset transactions. The Administration looks forward to continuing to work with Congress on developing digital asset legislation that includes adequate safeguards for consumers and investors while creating the conditions necessary for innovation.” , continues the press release.
Read also: Ethereum ETF Launch Potentially Still Weeks Away, Says Bloomberg Analyst
Background to Gary Gensler’s Criticisms
Securities and Exchange Commission (SEC) Chairman Gary Gensler sharply criticized the FIT21 bill, arguing that it would undermine decades of legal precedent and create regulatory loopholes.
“The Financial Innovation and Technology for the 21st Century Act (“FIT 21”) would create new regulatory loopholes and undermine decades of precedent for oversight of investment contracts, exposing investors and investment markets. capital at immeasurable risks,” Gensler said.
Gensler pointed out that the bill ignores established precedents for regulating investment contracts and could expose investors to significant risks without proper disclosure.
He also pointed out that the bill’s provisions requiring companies to self-certify as “digital products” would put immense pressure on the SEC to evaluate these certifications in an inconvenient time frame, given the large number of digital assets in circulation.
Potential impact and industry reactions
The FIT21 bill aims to provide regulatory clarity and consumer protection for the digital asset ecosystem by leveraging the capabilities of the SEC and the Commodity Futures Trading Commission (CFTC). Supporters of the bill believe it is a necessary step to prevent future incidents such as the FTX collapse and to promote innovation in the US financial system.
However, critics, including Gensler, say the bill could result in increased risks to the American public by allowing companies to circumvent SEC oversight through decentralized networks. The House of Representatives is expected to vote on the bill later today, although its path in the Senate is uncertain.
Looking Ahead: Benzinga’s Future of Digital Assets Event
The implications of the FIT21 bill and other regulatory developments in the digital assets space will be discussed in more detail at the Benzinga meeting. The future of digital assets event on November 19.
This event will bring together industry leaders, investors and policymakers to discuss the evolving role of digital assets in the global financial landscape.
Attendees will gain valuable insights into how these regulatory changes could shape the future of the industry. cryptocurrency investments and innovation.
Read next: Canaccord Genuity Reaffirms Galaxy Digital Holdings “Buy” Rating with a Target of C$17.00
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