The White House released a statement on the Financial Innovation and Technology for the 21st Century (FIT21) Act ahead of the full House vote.
Despite initial strong opposition to the bill, it appears the administration is no longer threatening to veto FIT21 but has instead raised concerns in the bill about the lack of investor protection.
The White House expressed opposition in an announcement regarding the passage of the Financial Innovation and Technology for the 21st Century (FIT21) Act in the U.S. House of Representatives.
In the statement, the White House emphasized its desire to work with Congress to develop a comprehensive and balanced regulatory framework for digital assets. This is intended to promote responsible innovation and strengthen U.S. leadership in the global financial system.
The government also raised concerns about the lack of investor protections if the bill is passed by Congress. As a result, the authority believes that FIT21 in its current state is lacking in protections for consumers and investors when engaging in certain digital asset transactions.
The statement came just hours after U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler came out in opposition to the legislation.
Gensler argued that the bill would harm the SEC’s efforts to oversee both traditional capital markets and cryptocurrency markets, and would redefine how issuers of securities must comply with related laws applicable state and Supreme Court precedent.
Meaning of the FIT21 bill
FIT21 aims to create a new definition specifically for digital assets, defining when they are considered securities or digital commodities.
Also determine whether the SEC or the Commodity Futures Trading Commission (CFTC) is the primary spot market regulator.
The full House will vote on the bill Wednesday afternoon (US time).The White House statement concluded by expressing the administration’s desire to continue working with Congress in developing digital asset legislation that includes adequate protections for consumers and investors. investment while promoting the necessary conditions for innovation.
