As we know, the White House opposes FIT21. But he says he is ‘willing to work with Congress’ on a balanced framework for digital assets. A new statement from the Biden administration announces the president’s stance on FIT21. Although the Biden administration opposes FIT21, it is open to working with regulators to create a balanced cryptocurrency regulatory framework. The US House of Representatives will vote on FIT21 later today.
Biden administration opposes FIT21, but…
cryptokoin.comAs you follow from , the spot Ethereum ETF trend continues in the market. However, efforts to regulate the cryptocurrency market have also accelerated. In this regard, the market closely follows the regulations in the USA. The White House opposes passage of FIT21 (Financial Innovation and Technology Act for the 21st Century). The Biden administration underlines the following in its statement on Wednesday:
The administration opposes the passage of H.R. 4763, which would impact the regulatory structure for digital assets in the United States. The Administration is eager to work with Congress to provide a comprehensive and balanced regulatory framework for digital assets that builds on existing authorities that will promote the responsible development of digital assets and payments innovation and help strengthen the United States’ leadership in the global financial system.
FIT21 aims to increase control over cryptocurrency!
The White House says the bill currently lacks “sufficient protections for consumers and investors engaged in certain digital asset transactions.” He also notes that more time is needed to work with Congress on crypto legislation. The White House’s comments come as the US House of Representatives prepares to vote on FIT21 later today.
FIT21 aims to oversee crypto spot markets and “digital commodities”, primarily Bitcoin. It will provide more power and funds in this direction. The bill also creates a process that would allow secondary market trading of digital commodities “if they were originally offered as part of an investment contract.” FIT21 is unlikely to come up in the Senate this year. However, according to experts, the bill will lay the groundwork for the next Congress in January.
FIT21 discussions
House Financial Services Committee Ranking Democrat Maxine Waters told the House Rules Committee on Tuesday that FIT21 is one of the worst bills she has ever seen. Waters noted that FIT21 will stretch the CFTC’s resources. Therefore, this will weaken the agency’s sanctions against the sector, she noted. The SEC has 4,500 staff, according to its website. The CFTC has nearly 700 employees, according to its fiscal year 2024 budget document. “Let me tell you a secret that big crypto doesn’t want you to know, even under this bill,” Waters said. “The CFTC does not have sufficient authority to regulate crypto in this bill.” said.
SEC Chairman Gary Gensler also criticized FIT21. In this context, he said that it would create new gaps in the regulation. He also emphasized that it would eliminate the Howey Test, a 1946 U.S. Supreme Court case frequently cited by the SEC in crypto-related cases, to determine whether an asset qualifies as an investment contract and therefore a security. In this regard, Gensler made the following statement:
The crypto industry’s track record of failure, fraud, and bankruptcies isn’t because we don’t have rules, or because the rules are vague. This is because many players in the crypto industry do not play by the rules. We should make a policy choice to protect the investing public rather than facilitating the business models of companies that do not comply with the rules.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!