Gary Gensler, the head of the SEC, expressed his concerns about the FIT21 bill, arguing that it could create new regulatory loopholes and undermine decades of precedent for overseeing investment contracts, putting investors and capital markets at immeasurable risk. 😟

The bill proposes a means for cryptocurrency contracts to become "decentralized" and free of SEC oversight. Companies will be able to independently claim that they issue “digital goods,” leaving the SEC only 60 days to approve whether the asset meets the criteria for a digital good.

Gensler argues that the SEC needs more than 60 days to provide adequate oversight. He also said the bill would harm U.S. capital markets by allowing dubious investors and companies to bypass the SEC by claiming to be decentralized networks.

The House is expected to vote on the bill next Wednesday.