Markets
US President Biden Does Not Threaten Veto Crypto Market Structure Bill, But ‘Opposes Its Passage’
The White House opposes the US House of Representatives’ passage of a crypto market structure bill, but the president is not threatening to veto it, which is a positive sign for the crypto industry.
US President Joe Biden’s White House released a administrative policy statement The administration on Wednesday 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 crypto markets, contrary to previous statements by Securities and Exchange Commission Chairman Gary Gensler, who has repeatedly stated that he didn’t think the industry needed additional crypto-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 payment innovation and will help strengthen U.S. leadership in the global financial system,” the statement said. “HR 4763, in its current form, does not have sufficient protections for consumers and investors who engage in certain digital asset transactions.”
This is the second administrative policy statement the administration has issued in recent weeks, following threaten with a veto against a bill to overturn controversial SEC accounting guidelines. This bill has traveled the Home And Senate.
The statement came hours after the SEC’s Gensler published his statement opposing the legislation, saying it would harm the regulator’s efforts to control traditional capital markets as well as crypto markets.
FIT21 would redefine how securities issuers must comply with existing federal law and Supreme Court precedent, 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 described by Gensler as these companies trying to evade compliance with the requirements of disclosure and other compliance requirements of issuers of securities.
The bill would create a new definition specific to digital assets, to identify whether they are securities or digital commodities and whether the SEC or the Commodity Futures Trading Commission should be the primary regulator of the spot market. The full House is expected to consider the bill later Wednesday, with a vote expected this afternoon.
“The Administration looks forward to continuing to work with Congress on developing digital asset legislation that includes adequate safeguards for consumers and investors while creating the conditions necessary for innovation, and additional time will be required for such collaboration,” the White House statement concluded on Wednesday. .
UPDATE (May 22, 2024, 2:47 p.m. UTC): Adds additional details.