Bitcoin
US President Biden does not threaten to veto crypto market structure bill, but ‘opposes passage’
The White House is against passing a crypto market structure bill in the US House of Representatives, but the president is not threatening to veto it, in a positive sign for the crypto industry.
US President Joe Biden’s White House published a administrative policy statement Wednesday, saying the administration opposed passage of the Financial Technology and Innovation for the 21st Century Act, citing concerns about the lack of investor protections if it passed Congress. The bill also suggested that the White House would like to work with Congress on future legislation that would address crypto markets, in contrast to previous statements from Securities and Exchange Commission Chairman Gary Gensler, who has repeatedly said he does not believe the industry needs of additional legislation specific to cryptography.
“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 payments innovation and help reinforce U.S. leadership. in the global financial system,” the statement said. “HR 4763 in its current form lacks sufficient protections for consumers and investors who engage in certain digital asset transactions.”
This is the second administrative policy statement that the government has published in recent weeks, after threatening a veto against a bill that seeks to overturn the SEC’s controversial accounting guidelines. This bill sailed through the Home It is Senate.
The statement came hours after the SEC’s Gensler published his own opposing statement on the legislation, saying it would undermine the regulator’s efforts to police traditional capital markets as well as crypto markets.
FIT21 would redefine how securities issuers must comply with existing federal law and Supreme Court precedents, the SEC chairman said in his statement.
The bill’s supporters say U.S. law does not allow crypto companies to operate without the threat of civil litigation, a view Gensler described as these companies trying to avoid complying with disclosures and other compliance requirements for securities issuers.
The bill would create a new definition specific to digital assets, to identify when they are digital securities or commodities and whether the SEC or the Commodity Futures Trading Commission should be the primary regulator of the spot market. The Chamber plenary is expected to approve the project on Wednesday, with a vote scheduled for this afternoon.
“The administration looks forward to continued collaboration with Congress in developing legislation for digital assets that includes appropriate protections for consumers and investors while creating the conditions necessary for innovation, and additional time will be needed for such collaboration,” concluded the statement from the White House on Wednesday. .
UPDATE (May 22, 2024, 2:47 pm UTC): Adds additional details.