Biden and SEC Chair Gensler Express Opposition to Current Crypto Regulation Bill
Summary:
Prior to a House of Representatives vote on a crucial cryptocurrency regulation legislation (H.R. 4763, FIT21 Act), President Joe Biden and SEC Chair Gary Gensler expressed their opposition, citing a lack of sufficient consumer and investor protections. The White House suggests a willingness to collaborate with Congress on a substitute bill for a clear regulatory framework for crypto. Possible vetoing of the FIT21 Act and H.J.Res. 109, a resolution intended to reverse an SEC accounting rule about banks and crypto, by the President, is also indicated.
Ahead of a vital House of Representatives vote on a legislation impacting crypto regulation, President Joe Biden of the USA along with Securities and Exchange Commission (SEC) Chair, Gary Gensler, issued statements. On May 22, the Biden administration disapproved the passing of H.R. 4763, the 21st Century Financial Innovation and Technology (FIT21) Act, arguing that it falters in providing adequate safety for consumers and investors partaking in distinct digital asset dealings. Chair Gensler's proclamation that claimed FIT21 could potentially lead to "new regulatory loopholes" and pose risk to the solidity of American capital markets was issued right before the White House announced its stance.
H.R. 4763, which is scheduled for May 22 House vote, plans to streamline how digital asset regulation is managed by the SEC and the Commodity Futures Trading Commission. Numerous top players in the industry and lawmakers have highlighted the unclear regulatory structure in the crypto domain, instigating certain firms to either abandon the US or persist and face possible SEC enforcement actions.
The White House conveyed its readiness to collaborate with Congress on devising a substitute bill to shape a clear regulatory body for cryptocurrency. President Biden, according to the communique, might consider overruling the FIT21 bill if it comes to pass. He hinted at a similar course of action against H.J.Res.109, a joint resolution aiming to reverse an SEC accounting directive regarding banks dealing with cryptocurrency. This news story is still unfolding and additional details will be incorporated as they become available.
Published At
5/22/2024 6:06:04 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.