The US House passed a Bill to regulate cryptocurrencies with bipartisan support, despite SEC Chair Gensler’s concerns about risks. The Bill reclassifies cryptocurrencies as commodities, shifting oversight to the CFTC. Meanwhile, Donald Trump’s campaign embraces crypto donations to attract a young voter base.
In a pivotal move, the US House of Representatives has passed a Bill to establish a legal framework for cryptocurrencies, despite the SEC’s warnings about potential financial risks. The bipartisan approved measure, called the Financial Innovation and Technology for the 21st Century Act, passed with a vote of 279-136. Its future in the Senate, however, remains uncertain.
Proponents argue the Bill will clarify regulations and stimulate industry growth. This passage coincides with indications from the SEC that it may approve applications for ether exchange-traded funds, providing a surprising boost to the cryptocurrency landscape.
SEC Chair Gary Gensler cautioned against the Bill, stating, “it would create new regulatory gaps and undermine decades of precedent… putting investors and capital markets at immeasurable risk.” He emphasized the need for cryptocurrencies to adhere to traditional securities regulations to ensure investor protections.
Gensler also criticized the Bill’s provision that allows crypto investment contract issuers to self-certify their products as digital commodities, essentially placing the burden on the SEC to challenge these claims within 60 days. The Bill finds support among crypto advocates, who view the SEC as an obstacle to the full adoption of digital assets.
Distinctly, the Bill reclassifies cryptocurrencies as commodities, shifting primary regulatory authority to the Commodity Futures Trading Commission (CFTC) and easing SEC oversight. It proposes a tailored disclosure and registration format for digital asset companies, although it faces challenges in the Senate where various lawmakers are crafting alternative crypto regulations.
In a related note, Donald Trump’s presidential campaign has embraced crypto, announcing it will accept cryptocurrency donations to build a ‘crypto army’ ahead of the elections via the Coinbase exchange. This initiative aims to attract young male voters active in the crypto space, allowing donations in various cryptocurrencies, from Bitcoin to Shiba Inu Coin.
The recent passage of the cryptocurrency Bill marks a significant shift in the regulatory landscape, prioritizing commodity status over securities for digital assets. Despite substantial backing within Congress, SEC warnings highlight potential investor risks and regulatory gaps. The outcomes in the Senate remain uncertain, while the move reflects broader trends, such as Donald Trump’s campaign capitalizing on crypto appeal to younger voters. As dynamics unfold, the crypto industry braces for potential changes that could redefine its future.
Original Source: www.business-standard.com
