Biden Administration Announces Opposition To FIT21
President Joe Biden’s administration will oppose the passage of Financial Innovation and Technology for the 21st Century Act (FIT21) amidst its vote in the House of Representatives, a Wednesday statement from the White House claims.
The White House statement says that FIT21 “lacks sufficient protections for consumers and investors who engage in certain digital asset transactions,” but stops short of vetoing the legislation altogether.
“The Administration is eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, which will promote the responsible development of digital assets and payment innovation and help reinforce United States leadership in the global financial system,” the statement continues.
The Biden administration’s statement comes just as the House of Representatives are scheduled to vote on whether or not to advance the key piece of crypto regulation widely supported by the blockchain sector.
If passed, FIT21 would allot greater freedoms to U.S. crypto operators and delegate increased regulatory responsibility of digital assets towards the Commodity Futures Trading Commission (CFTC).
Meanwhile, critics argue that the passage of FIT21 could cause market instability and negate already established securities law.
On Wednesday morning, United States Securities and Exchange Commission Chair Gary Gensler released his own statement criticizing the bill, claiming it would put “investors and capital markets at immeasurable risk.”
“The crypto industry’s record of failures, frauds, and bankruptcies is not because we don’t have rules or because the rules are unclear,” Gensler wrote. “It’s because many players in the crypto industry don’t play
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