The Biden Administration has expressed its opposition to the crypto bill FIT21 Act, which is set to be voted on in the House today. The White House issued a statement highlighting concerns about the lack of consumer and investor protections in the current version of the bill. However, they also offered to collaborate with Congress to establish a regulatory framework that balances the needs of digital assets. The Administration emphasized the importance of comprehensive legislation that promotes responsible development and innovation while ensuring adequate safeguards for consumers and investors. The statement concluded by stating that more time would be needed for further collaboration with Congress.
In a separate statement, SEC Chair Gary Gensler also voiced his opposition to the FIT21 Act. He argued that the failures and fraudulent activities in the crypto industry were not due to a lack of rules, but rather because many players in the industry did not adhere to existing rules. Gensler emphasized the need to prioritize the protection of the investing public over facilitating noncompliant business models.
It is worth noting that the White House’s stance on the FIT21 Act represents a shift in their approach to crypto policy. Previously, they had threatened to veto a congressional attempt to nullify the controversial SEC rule, SAB 121. However, the Administration’s statement on the FIT21 Act takes a more conciliatory tone.
As the House prepares to vote on the crypto bill, the opposition from the White House and SEC Chair Gensler raises important questions about its potential impact. What are your thoughts on this development? Let us know in the comments section below.
