SEC Chairman Opposed the Cryptocurrency Bill

US Securities and Exchange Commission (SEC) Chairman Gary Gensler opposed the bill called Financial Innovation and Technology in the 21st Century.

The bill, called FIT21 for short, aims to resolve legal uncertainties in the cryptocurrency industry and determine the jurisdictional limits of the SEC and the Commodity Futures Trading Commission (CFTC).

“FIT21 creates new loopholes and challenges decades of precedent in how investment contracts are regulated, putting investors and capital markets at immeasurable risk,” Gensler said in today’s statement. Cryptocurrency companies could evade SEC scrutiny by labeling their offerings as “decentralized” Gensler said that this could put not only the cryptocurrency space but also the $100 trillion capital market at risk.

“What if pump-dumpers decide they are not subject to securities laws by labeling themselves as crypto investment contracts or declaring themselves as decentralized systems,” Gensler asks? said.