Biden and Gensler Oppose Crypto Bill Aiming for House Vote

By: Isha Das

The Financial Innovation and Technology for the 21st Century Act (FIT21) is set to be voted on by the US House of Representatives, facing firm opposition from both President Biden and SEC Chair Gary Gensler. The Biden administration has stated it opposes the bill but has refrained from threatening a veto. The White House expressed willingness to work with Congress to ensure a balanced regulatory framework for digital assets.

Gary Gensler, the Chairman of the SEC, argues that the bill would significantly undermine investor protections and weaken the SEC's regulatory oversight. Gensler claims the bill would create extensive regulatory gaps, potentially putting investors and capital markets at substantial risk. He cited concerns that blockchain-based investment contracts would be classified as decentralized, excluding them from SEC oversight.

Despite this opposition, the proposed legislation has substantial backing from certain members of Congress and the crypto community. Proponents like Congressman French Hill argue that the bill provides necessary securities, preventing situations akin to the FTX fallout. Moreover, several major crypto companies including Coinbase and advocacy groups like Stand With Crypto have shown their support for the legislation, highlighting its role in offering regulatory clarity and consumer safety.