FIT 21 Crypto Bill Will Not Be Vetoed by the White House If Passed

Key Points:

• President Biden won’t veto the FIT 21 crypto bill if passed, despite concerns about consumer protection.
• SEC Chair Gensler strongly opposes the bill, warning of regulatory gaps and risks to investors.
• Despite opposition, the bill has support from some Congress members and the crypto industry, signaling a pivotal moment for US crypto regulation.

US President Joe Biden has hinted at signing the FIT 21 crypto bill into law if it passes Congress, despite the opposition voiced by the administration. The bill at the center of regulating digital assets has finally received some mixed reactions from Congress and financial regulators.

Biden Administration’s Stance on FIT 21 Crypto Bill Revealed

The Biden administration further stated it had concerns over the bill in its present form, since consumers and investors might not be sufficiently protected in some digital asset transactions. It also expressed a commitment to working with Congress to come up with a comprehensive regulatory framework.

Gary Gensler, the Chairman of the US Securities and Exchange Commission, went hard against the FIT 21 crypto bill, highlighting that it had huge regulatory gaps and put investors and capital markets at risk. Gensler complained that the bill would exempt from the definition of securities blockchain-based investment contracts, meaning issuers could dodge the oversight of the SEC.

Debate Intensifies as Congress Faces Crucial Vote on Crypto Regulation

Despite pushback from Gensler and the Biden administration, the bill was supported by certain members of Congress and crypto players. Congressman French Hill said:

“With the FTX collapse fresh in our minds, we wanted to ensure that the U.S. avoided future fraudulent activity conducted in the same manner as we witnessed with FTX.”

Crypto companies, including Coinbase and Kraken, have also been voicing support for the legislation. The Crypto Council for Innovation echoed the sentiment that responsible regulation is important in the industry. The vote on FIT 21 is now likely to be an important moment for crypto legislation in the United States.