Sunday, June 16, 2024

US House Approves Cryptocurrency Bill Despite SEC’s Warning of ‘Unquantifiable Risk’

US House of Representatives Passes Landmark Bill on Digital Assets Regulation and Industry Growth

The US House of Representatives made waves on Wednesday with the passing of a groundbreaking bill aimed at creating a new regulatory framework for digital assets. The “Financial Innovation and Technology for the 21st Century Act” received bipartisan support in a 279-136 vote, signaling a major shift in how cryptocurrencies are viewed and regulated in the United States.

The bill’s main goal is to clarify the legal status of digital assets, specifically cryptocurrencies, and promote industry growth. Supporters argue that current regulations are outdated and stifling innovation in the rapidly expanding crypto sector. They believe that this legislation will provide much-needed clarity for investors and attract more capital into the industry.

However, the bill faces a challenging road ahead in the Senate, as well as strong opposition from SEC Chair Gary Gensler. Gensler expressed serious concerns about the implications of the bill, warning that it could expose investors to significant risks and create new regulatory gaps that could be exploited by bad actors in the market.

The passage of this bill comes at a critical time for the crypto industry, with the SEC poised to approve applications for spot ether exchange-traded funds (ETFs) that could boost market sentiment. The tension between crypto proponents and regulators continues to escalate, with Gensler advocating for stricter regulations to protect investors from fraud and manipulation.

Crypto industry leaders like Shardereum Cofounder Nischal Shetty and Pi42 Cofounder & CEO Avinash Shekhar have hailed the passage of the bill as a significant milestone for the sector. They believe that regulatory clarity will drive wider adoption of cryptocurrencies and open up new opportunities for growth and innovation in the Web3 ecosystem.

As the Senate considers the bill and the SEC weighs its options, the future of digital asset regulation in the US remains uncertain. The outcome of this legislative battle will have far-reaching implications for the crypto industry and its stakeholders as they navigate the evolving landscape of financial technology.

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