The Biden administration has thrown a wrench into the plans for the first-ever standalone crypto market structure bill in the US. The White House issued a statement opposing the passage of the Financial Innovation and Technology for the 21st Century Act (FIT-21) due to concerns about investor protections.
The Administration’s Concerns
The crux of the administration’s argument is that the bill, as currently written, might not safeguard investors adequately. Here are some potential issues raised:
- Lack of Clarity on Jurisdiction: The bill might not clearly define which regulatory body (SEC or CFTC) would oversee different types of crypto assets, potentially creating confusion and uncertainty for investors.
- Potential Loopholes for Fraudulent Activity: Critics argue the bill could allow bad actors to exploit loopholes by labeling their products as crypto assets to avoid existing securities regulations.
The Crypto Industry Pushes Back
The crypto industry is not taking the opposition lying down. Some argue that the administration doesn’t fully understand the complexities of the market. Others believe the current regulatory environment stifles innovation.
The Road Ahead: Negotiations or Stalemate?
While the White House opposes the current version of the bill, it hasn’t explicitly threatened a veto. This leaves room for potential negotiations and amendments to address the administration’s concerns.
What Does This Mean for Crypto?
The fate of the FIT-21 bill remains uncertain. This development highlights the ongoing debate about how to regulate the crypto market. It could potentially delay the creation of a clear regulatory framework for cryptocurrencies in the US.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoasset