Opposition from SEC Chair Gensler
The White House has announced that it will not veto the Financial Innovation and Technology for the 21st Century Act (FIT21), despite opposition from Securities and Exchange Commission (SEC) Chair Gary Gensler.
The White House expressed concerns about the bill’s lack of consumer and investor protections, but stated that it is willing to work with Congress to improve it.
CFTC Regulation of Digital Assets
FIT21 would grant the Commodity Futures and Trading Commission (CFTC) the authority to regulate digital assets as commodities if their underlying blockchain is sufficiently decentralized.
Gensler’s Dissent
Gensler argues that the bill would create regulatory gaps and undermine existing securities laws. He believes that the crypto industry’s history of fraud and bankruptcies is due to a lack of compliance, not a lack of regulation.
Next Steps
The FIT21 bill is expected to be voted on this week. The White House’s support increases the likelihood of its passage, but it remains to be seen whether Congress will address the concerns raised by the SEC.
