US House passed new crypto bill, ignoring regulators' warnings.


Despite warnings from U.S. securities regulators about the risks associated with the bill, the House of Representatives has passed the new digital currency legislation.

On Wednesday, the U.S. House of Representatives passed a bill aimed at creating new legal frameworks for digital currencies, despite rare warnings from U.S. securities regulators that the bill could pose new financial risks.

The "21st Century Financial Innovation and Technology Act," supported by the Republican Party, passed with bipartisan support in a vote of 279 to 136. However, it is still unclear whether the Senate will discuss the bill.

Supporters in Congress believe the bill will provide regulatory clarity and help promote industry growth.

The House's approval comes as the U.S. Securities and Exchange Commission (SEC) signaled it may approve an application for a spot Ethereum trading fund, a surprising positive for the industry.

However, SEC Chairman Gary Gensler stated in a statement that the bill "will create new regulatory gaps and upend decades of precedent regarding the regulation of investment contracts, posing immeasurable risks to investors and capital markets."

The bill has received support from cryptocurrency advocates and industry organizations who have long considered the SEC, under Gensler's leadership, an obstacle to the widespread adoption of digital assets.

Given high-profile prosecutions, fraud cases, bankruptcies, and failures, Gensler has insisted that cryptocurrencies should follow the same laws as other assets.

In a statement on Wednesday, he said that under the bill, investment contracts recorded on the blockchain would no longer be considered securities, thereby depriving investors of protections under the securities laws.

Among other criticisms, Gensler also pointed out that the bill would allow issuers of crypto investment contracts to self-certify their products as digital commodities not regulated by the SEC, with the SEC having only 60 days to object to this certification.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End


Digital Currency

Digital currency is a form of money that exists only in digital form, not controlled by any central authority. It's based on blockchain technology, offering fast, decentralized transactions. However, it also comes with price volatility and security challenges.

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.


Contact Us

Social Media