US House passes crypto regulation bill amid SEC opposition

US House passes crypto regulation bill amid SEC opposition is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Republicans and some Democrats back the bill, garnering bipartisan support with a 279-136 vote, yet its fate in the Senate remains uncertain.
• While the SEC cautioned that the bill could create regulatory gaps and undermine investor protection, proponents argue it offers clarity and fosters industry growth.
• The legislation classifies digital assets as commodities or securities based on blockchain decentralisation, a move criticised by SEC Chair Gary Gensler for potentially allowing self-certification and evading SEC oversight.

Despite warnings from the SEC, the US House of Representatives passes the Financial Innovation and Technology for the 21st Century Act, which aims at establishing a new regulatory framework for digital currencies.

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House approves new crypto framework

Despite a warning from the US Securities and Exchange Commission (SEC) about potential financial risks, the US House of Representatives passed the Financial Innovation and Technology for the 21st Century Act.

Under the bill investment contracts recorded on a blockchain would no longer be deemed securities, denying investors protection under securities laws.

The bill, supported by Republicans and some Democrats, secured bipartisan approval in a 279-136 vote. However, its future in the Senate remains uncertain. Advocates of the bill assert that it provides much-needed regulatory clarity and will aid in the expansion of the cryptocurrency industry.

Also read: Security for cryptocurrency exchanges

SEC raises concerns over investor protection

Conversely, SEC Chair Gary Gensler expressed concerns that the legislation could create regulatory gaps and erode decades of investor protection standards.

Gensler criticised the bill for allowing issuers to self-certify their products as decentralised, potentially bypassing SEC oversight. Under the legislation, digital assets would be classified as commodities or securities based on blockchain decentralisation.

This move has sparked debate, with proponents arguing it offers flexibility while critics fear it may expose investors to heightened risks. The bill’s passage marks a significant development in the ongoing regulatory debate surrounding cryptocurrencies and reflects a growing recognition of the industry’s importance.