Markets
US President Biden Does Not Threaten Veto of Cryptocurrency Market Structure Bill, But Opposes Approval
The White House is against the passage of a bill on the structure of the cryptocurrency market by the US House of Representatives, but the president does not threaten to veto it, which is a positive sign for the cryptocurrency industry cryptocurrencies.
The White House of American President Joe Biden has published a statement of administrative policy He said Wednesday that the administration opposed passage of the Financial Innovation and Technology for the 21st Century Act, citing concerns about the lack of investor protections if it were to pass Congress. The bill also suggests that the White House would like to work with Congress on future legislation regarding cryptocurrency markets, in contrast to previous statements by Securities and Exchange Commission Chairman Gary Gensler, who has repeatedly said he does not believe the industry requires additional cryptocurrency-specific legislation.
“The Administration looks forward to working with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, that will promote responsible digital asset development and payments innovation and help strengthen industry leadership. United States in the global financial system,” the statement reads. “HR 4763 in its current form does not have sufficient protections for consumers and investors engaging in certain digital asset transactions.”
This is the second policy statement released by the administration in recent weeks threatening a veto against a bill that seeks to overturn the SEC’s controversial accounting guidelines. That bill passed through the Home AND Senate.
The statement came just hours after Gensler’s statement from the SEC he published his statement against the legislation, saying it would harm the regulator’s efforts to police traditional capital markets and cryptocurrency markets.
FIT21 would redefine how issuers of securities must comply with existing federal law and Supreme Court precedents, the SEC chairman said in his statement.
Supporters of the bill say U.S. law does not allow crypto companies to operate without the threat of civil litigation, a view Gensler described as these companies seek to evade compliance with disclosure and compliance requirements for issuers of titles.
The bill would create a new definition specifically for digital assets, to identify when they are digital securities or commodities and whether the SEC or the Commodity Futures Trading Commission should be the primary regulator of the spot market. The full House will consider the bill later Wednesday, with a vote expected this afternoon.
“The Administration looks forward to continuing to work with Congress on developing legislation for digital assets that includes adequate protections for consumers and investors while creating the necessary conditions for innovation, and additional time will be needed for this collaboration,” the White House statement concluded Wednesday. .
UPDATE (May 22, 2024, 2:47 PM UTC): Adds more details.