In a recent turn of events, the White House has officially expressed its opposition to the passage of the Financial Innovation and Technology for the 21st Century Act (FIT 21) in its current form. Despite this, the administration has conveyed a clear willingness to work with Congress to create a comprehensive and balanced regulatory framework for digital assets.
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The Opposition
The FIT 21 bill, which aims to reform market rules for digital assets, has been met with criticism from the White House due to concerns over consumer and investor protections. The administration believes that the bill, as it stands, does not offer sufficient safeguards for those engaging in digital asset transactions, according to Coingape.
The Call for Collaboration
While opposing FIT 21, the White House has not threatened to veto the bill. Instead, it has taken a constructive stance, emphasizing its eagerness to collaborate with Congress. The goal is to develop a regulatory framework that promotes responsible innovation and reinforces the United States’ leadership in the global financial system.
A Comprehensive Framework
The administration’s approach is to build on existing authorities and create conditions conducive to innovation. This includes establishing guardrails for consumers and investors to navigate the digital asset landscape safely.
The SEC’s Involvement
The Securities and Exchange Commission (SEC) Chair Gary Gensler has also voiced opposition to FIT 21, citing that the bill could undermine the SEC’s efforts to regulate both traditional capital markets and crypto markets. The bill’s current language could potentially redefine compliance requirements for securities issuers, which is a point of contention for the SEC.
The Path Forward
The White House’s statement concludes with a commitment to continued collaboration with Congress. The administration seeks to develop legislation that includes adequate guardrails while fostering the necessary conditions for innovation in the digital asset sector.
Reference:
https://coingape.com/just-in-white-house-rejects-fit-21-calls-for-fair-crypto-laws/