SEC Chairman Gary Gensler has spoken out against the Financial Innovation and Technology Act (FIT21) that is about to be voted on in the House of Representatives

He believes that FIT21 will create legal loopholes, putting investors at risk.

Contrary to the SEC Chairman, most of the Crypto community is very supportive of FIT21 because it brings more legal certainty, something that Crypto is lacking in the United States and around the world.

If this bill passes, it will:

🔹 Provide blockchain projects with a roadmap to launch safely and effectively in the United States;

🔹 Clarify the line between the SEC and CFTC on who regulates what, helping to define Crypto as a security or a commodity;

🔹 Oversee exchanges and protect investors with regulations such as: separating customer assets from exchange assets, regulating internal token lockup periods, limiting annual sales volume, and requiring projects to be transparent about information, etc.

The House is expected to vote on the bill early tomorrow morning. After that, FIT21 will need to be approved by the Senate before the President signs it into law, but this process is expected to be accompanied by more drama and is unlikely to have results this year.