U.S. President Biden Does Not Threaten Veto Against House Crypto Market Structure Bill, But ‘Opposes Passage’

As a crypto investor, I’ve kept a close eye on recent developments in Washington D.C. And today, I received some troubling news. The White House issued a statement expressing their opposition to the Financial Innovation and Technology for the 21st Century Act. According to them, this bill poses concerns regarding investor protections if it were to be passed through Congress. In simpler terms, they believe that current investor safeguards may not be sufficient under this proposed legislation.

The Administration is keen on collaborating with Congress to establish a thorough and equitable regulatory structure for digital assets, leveraging existing powers. This framework aims to foster the responsible growth of digital assets and payment innovations, as well as bolster America’s dominance in the global financial system. However, H.R. 4763 as it stands falls short in providing adequate safeguards for consumers and investors participating in specific digital asset transactions.

Following Securities and Exchange Commission Chair Gary Gensler’s publication of a strong opposition statement hours prior, I now understand that the proposed legislation could hinder the SEC’s endeavors to enforce regulations in both traditional capital markets and cryptocurrency markets.

The SEC chairman indicated that FIT21 could potentially alter the requirements for securities issuers when adhering to current federal laws and previous Supreme Court rulings.

According to the bill’s supporters, U.S. legislation does not permit cryptocurrency firms to function without facing the risk of civil lawsuits. In the opinion of Gensler, this perspective equates to these companies attempting to avoid adhering to disclosure and other regulatory requirements applicable to securities issuers.

As a crypto investor, I’m keeping a close eye on the upcoming legislative development that could impact the regulatory landscape of digital assets. Specifically, a new bill is about to be considered in the full House later today, which aims to establish clear definitions for digital assets regarding securities and commodities. This definition will determine which regulatory body, either the Securities and Exchange Commission (SEC) or Commodity Futures Trading Commission (CFTC), should oversee the primary market regulations. By clarifying these distinctions, it could potentially streamline the regulatory framework for digital assets and provide more certainty for investors like myself.

The White House statement released on Wednesday expressed eagerness for ongoing dialogue with Congress regarding the creation of digital asset legislation. This legislation should prioritize consumer and investor protection, while also fostering an environment that encourages innovation. More time is required for this collaborative process.