Get the latest updates on the impending House vote on H.R. 4763, the FIT21 Act, as President Biden and SEC Chair Gary Gensler voice opposition to the proposed crypto-focused legislation. Learn about the concerns raised by the Biden administration and the SEC regarding consumer protection and regulatory gaps in the crypto industry.
As the House of Representatives prepares to vote on H.R. 4763, the Financial Innovation and Technology for the 21st Century (FIT21) Act, President Joe Biden and SEC Chair Gary Gensler have expressed reservations about the proposed legislation's impact on crypto regulation.
In a statement released on May 22, the Biden administration highlighted concerns that H.R. 4763 lacks sufficient protections for consumers and investors engaged in digital asset transactions. This position was echoed by SEC Chair Gensler, who warned that the bill could create new regulatory gaps and jeopardize the stability of US capital markets.
Gensler referenced a Chainalysis report indicating widespread noncompliance among crypto firms, leading to fraud, bankruptcies, and misconduct. However, the report also noted a significant decline in revenue from illicit activities involving crypto in 2023, suggesting progress in addressing regulatory challenges.
Despite the White House's opposition to H.R. 4763, industry leaders and lawmakers have advocated for regulatory clarity in the crypto space to prevent companies from leaving the US or facing enforcement actions from regulatory agencies like the SEC.
The Biden administration expressed its willingness to collaborate with Congress on alternative legislation to establish a regulatory framework for crypto. While President Biden indicated he would not veto the FIT21 bill if passed, he previously threatened to veto H.J.Res. 109, a resolution targeting an SEC accounting rule related to banks handling crypto.
With the House vote on the FIT21 Act imminent, all eyes are on lawmakers as they weigh the potential implications of the proposed legislation. Despite Republican lawmakers holding a slim majority in the chamber, bipartisan support for regulatory clarity in the crypto industry may influence the outcome of the vote.
Representatives Wiley Nickel and French Hill, representing both Democratic and Republican perspectives, have publicly announced their intentions to support the FIT21 Act, underscoring the bipartisan nature of the debate surrounding crypto regulation in the US.
Stay tuned for updates on the House vote and its implications for the future of crypto regulation in the United States.
(TURNER WRIGHT, COINTELEGRAPH, 2024)