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House of Representatives Passes Crypto Bill Despite SEC Warnings
(Reuters) – The U.S. House of Representatives passed a bill on Wednesday to create a new legal framework for digital currencies, despite an unusual warning from the U.S. securities regulator that it could create new financial risks.
The Republican-sponsored Financial Innovation and Technology for the 21st Century Act passed by a bipartisan vote of 279 to 136. It is unclear whether the Senate will take up the measure.
Supporters of the bill in the U.S. Congress say the bill will provide regulatory clarity and help promote industry growth.
The House approval comes as the U.S. Securities and Exchange Commission (SEC) signals that it will likely approve applications for ether spot exchange funds, providing a surprising boost to the sector.
But SEC Chairman Gary Gensler said in a statement that the bill “would create new regulatory loopholes and undermine decades of precedent for oversight of investment contracts, exposing investors and financial markets at immeasurable risks.
The bill was supported by crypto advocates and industry organizations who have long viewed Gensler’s SEC as an obstacle to broader adoption of digital assets.
Noting the high-profile lawsuits, fraud cases, bankruptcies and bankruptcies, Gensler argued that cryptocurrencies should be subject to the same laws as other assets.
SEC Chairman Gary Gensler (Reuters)
In Wednesday’s statement, he said that under the bill, investment contracts recorded on a blockchain would no longer be considered securities, thereby depriving investors of the protections provided by securities laws .
Among other criticisms, Gensler said the bill would also allow issuers of crypto investment contracts to self-certify that their own products are digital products not subject to SEC oversight, leaving the agency only 60 days to dispute this.
(Reporting by Douglas Gillison and Brad Brooks; editing by Rod Nickel and Michael Perry)