The White House has said it will not veto passage of the FIT21 bill, despite US Securities and Exchange Commission Chairman Gary Gensler arguing against it.
In a new press release, the White House says it does not support H.R. 4763, also known as the Financial Innovation and Technology for the 21st Century Act (FIT21), because it currently provides “sufficient protections for consumers and investors engaged in certain digital asset transactions.”
However, the administration says that while it opposes the bill, it is willing to work with Congress to improve it.
“The Administration opposes the passage of HR 4763, which would impact the regulatory structure for digital assets in the United States…
The Administration looks forward to continued collaboration with Congress in developing digital asset legislation that includes adequate guardrails for consumers and investors while creating the conditions necessary for innovation, and more time will be needed for such collaboration .”
The bill, which would give the Commodity Futures and Trading Commission (CFTC) the power to regulate digital assets such as commodities if the blockchain they run on is sufficiently decentralized, will be put to a vote later this week.
In a notice from the SEC, Chairman Gensler expresses his dissent from the bill, saying it would create numerous regulatory gaps, undermining current securities laws.
“It is through the securities laws that we get full, fair and truthful disclosure, giving investors the information they need to make investment decisions and allowing regulators to protect against the types of fraud we have seen in crypto.
The crypto industry’s reputation for failure, fraud and bankruptcies is not because we have no rules or because the rules are unclear. That’s because many players in the crypto industry don’t follow the rules. We must make the policy choice to protect the investing public rather than facilitating business models of companies that don’t play by the rules.”
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Featured image: Shutterstock/turtix