- The U.S. House of Representatives passes a cryptocurrency bill despite SEC warning that it could pose financial risks.
- Supporters believe the bill will provide clarity and support for the crypto industry, but regulatory concerns could impact its approval.
The “21st Century Financial Innovation and Technology Act” has bipartisan support, with SEC Chairman Gary Gensler warning that it will create new regulatory loopholes and weaken the supervision of investment contracts, thereby exposing investors and capital markets to huge risks.
SEC chair warns of financial risks
SEC Chair Gary Gensler expressed concerns that the bill would create regulatory gaps and undermine existing oversight frameworks. He warned that the legislation could expose investors and capital markets to significant risks by removing certain protections for investment contracts recorded on blockchains. Gensler’s criticism highlights the potential dangers of reducing regulatory oversight in the rapidly evolving crypto sector.
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Industry support and opposition to SEC
Crypto supporters and industry organizations have long viewed the SEC as an obstacle to wider digital asset adoption. They argue that the new bill will foster innovation and growth by providing clear regulatory guidelines. However, the SEC’s opposition underscores the ongoing tension between regulators seeking to maintain control and industry advocates pushing for less restrictive oversight.
Potential impact on crypto regulation
The proposed bill would allow issuers of crypto investment contracts to self-certify their products as digital commodities, limiting SEC oversight. This shift could significantly change how digital assets are regulated, potentially reducing the regulatory burden on the crypto industry. However, critics argue that such changes could leave investors vulnerable to fraud and other risks.
Future of the bill in the senate
While the House has passed the bill, its fate in the Senate remains uncertain. The legislation’s supporters hope it will provide much-needed clarity and support for the crypto industry. However, strong opposition from the SEC and other regulatory bodies could influence the Senate’s decision, making the bill’s future unclear.
