News
US House Passes Cryptocurrency Bill Despite SEC Warnings
THE United States House of Representatives A bill was approved on Wednesday that aims to create a new legal framework for digital currenciesdespite an unusual warning from the United States Securities Regulation could create new ones financial risks. THE Republican-sponsored Financial Innovation and Technology for the 21st Century Act It passed on a bipartisan vote of 279-136. It is unclear whether the Senate will take up the measure.
Supporters of the bill in the United States Congress argue that the bill will provide regulatory clarity and help promote growth in the sector.
The House approval comes as the U.S. Securities and Exchange Commission (SEC) signals that it will likely approve applications for spot ether exchange funds, giving the sector a surprising boost.
But the chairman of the SEC Author: Gary Gensler said in a statement that the bill “would create new regulatory gaps and undermine decades of precedent in oversight of investment contractsexposing investors and capital markets to immeasurable risks.”
The bill was supported by Encrypt advocates and industry organizations that have long viewed Gensler’s SEC as an obstacle to broader digital asset adoption.
Noting high-profile court cases, fraud cases, bankruptcy cases and insolvencies, Gensler argued that cryptocurrencies should be subject to the same laws as other assets.
In a statement Wednesday, he said that under the bill, investment contracts recorded on a blockchain would no longer be considered securities, denying investors protections under securities laws.
Among other criticisms, Gensler said the bill would also allow issuers of cryptocurrency investment contracts to independently certify that their products are digital commodities that are not subject to SEC Oversightleaving the agency only 60 days to contest the decision.
(You can now subscribe to our ETMarkets WhatsApp Channel)