The U.S. House of Representatives passed the crypto bill despite SEC warnings: potential financial risks ignored

The U.S. House of Representatives has passed the 21st Century Financial Innovation and Technology Act, which has the potential to change the landscape of digital currencies. The bill, which is supported by Republicans, aims to create a new legal framework for digital assets. Despite the SEC's warnings about potential financial risks, the bill received bipartisan support by a vote of 279 to 136. Its fate now depends on the Senate.

Supporters of the bill believe that it will provide much-needed regulatory clarity and promote the development of the crypto industry. However, SEC Chairman Gary Gensler issued an unusual warning, expressing concern that the bill could create new regulatory loopholes and undermine decades of regulatory precedent.

Gensler stressed that these measures could expose investors and capital markets to significant risks. Gensler is particularly concerned about the bill's treatment of investment contracts recorded on blockchains. Under the proposed legislation, these contracts would no longer be classified as securities, depriving investors of the protections provided by securities laws. In addition, the bill would grant issuers of crypto investment contracts the right to self-certify their products as digital commodities that are not regulated by the SEC.

Under this provision, the SEC has only 60 days to challenge such certifications. Despite Gensler's reservations, the bill has received strong support from crypto advocates and industry groups. They have long viewed the SEC under Gensler as an obstacle to the wider adoption of digital assets.

However, Gensler has long argued that cryptocurrencies should be subject to the same regulatory standards as traditional assets. The House's approval of the bill comes as the U.S. Securities and Exchange Commission (SEC) has also sent a positive signal of approving a spot ether exchange-traded fund (ETF), which could further boost the crypto industry. However, the divergence of views between the SEC and the bill's supporters highlights the challenges of regulating this rapidly growing industry.

The bill's passage in the House is a major step forward in the ongoing debate over digital currency regulation in the United States. As the focus turns to the Senate, the conclusion remains uncertain, and stakeholders are anxiously monitoring the legislative process and its potential impact on the future of cryptocurrency legislation.#MegadropLista $BTC $ETH