Tech
US House Passes Cryptocurrency Bill Despite SEC Warnings
US House Passes Cryptocurrency Bill Despite SEC Warnings | Photo credit: REUTERS
The U.S. House of Representatives passed a bill Wednesday that seeks to create a new legal framework for Despite the unusual warning from the US securities regulator, digital currencies could create new financial risks.
The Republican-sponsored Financial Innovation and Technology for the 21st Century Act passed on a bipartisan vote 279-136. It is unclear whether the Senate will take up the measure.
Supporters of the bill in the U.S. Congress argue that the bill will provide regulatory clarity and help promote growth in the industry.
The House approval comes as the U.S. Securities and Exchange Commission (SEC) signals it will likely approve applications for spot ether exchange funds, in a surprising boost for the industry.
(For the day’s top tech news, subscribe to our tech newsletter Today’s Cache)
But SEC Chairman Gary Gensler said in a statement that the bill would “create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk.”
The bill was supported by cryptocurrency advocates and industry organizations who have long viewed Gensler’s SEC as an obstacle to broader adoption of digital assets.
Noting high-profile prosecutions, fraud cases, bankruptcies and bankruptcies, Gensler argued that cryptocurrencies should be subject to the same laws as other assets.
In Wednesday’s statement, he said that under the law, investment contracts recorded on a blockchain would no longer be considered securities, denying investors the protection afforded by securities laws.
Among other criticisms, Gensler said the bill would also allow issuers of cryptocurrency investment contracts to certify to themselves that their products are digital commodities not subject to SEC oversight, leaving the agency only 60 days to dispute it.