SEC Chairman Gary Gensler, known for his negative approach towards the cryptocurrency market, announced that he condemned the crypto market bill before the House of Representatives vote.
The SEC chairman publicly stated his opposition to the Financial Innovation and Technology for the 21st Century Act, or FIT21 Act, in a statement released today, The Block reported.
Gensler said the proposed law would exempt blockchain and crypto from the securities purview, which would weaken investor protection.
“The FIT21 law will create new regulatory loopholes and undermine decades of precedent on the supervision of investment contracts, placing investors and capital markets at immeasurable risk.
The law would weaken the classification of crypto assets as investment contracts, which would remove them from the SEC's oversight. This could ultimately hinder investor protection efforts.”
In his statement, Gensler argued that FIT21 could allow crypto companies to certify their crypto investments and products as “decentralized” and under a “special class of digital commodities” and thus avoid scrutiny by the SEC.
Republican presidential candidate and former US President Donald Trump, who stands out with his moderate approach to Bitcoin and cryptocurrencies, supports the bill in question.
In addition, 60 cryptocurrency organizations, including Gemini, Kraken, Coinbase and Digital Currency Group, recently announced their support for the bill in question.
*This is not investment advice.