The FIT21 bill, also known as the Financial Innovation and Technology for the 21st Century Act, may not face a veto from the White House, despite opposition from U.S. Securities and Exchange Commission Chair Gary Gensler. In a recent press release, the White House expressed its lack of support for HR 4763, citing inadequate protection for consumers and investors involved in certain digital asset transactions. However, the administration is open to collaborating with Congress to enhance the bill. The White House stated, “The Administration opposes passage of H.R. 4763, which would affect the regulatory structure for digital assets in the United States… The Administration looks forward to continued collaboration with Congress on developing legislation for digital assets that includes adequate guardrails for consumers and investors while creating the conditions needed for innovation, and further time will be needed for such collaboration.” The bill grants regulatory authority to the Commodity Futures and Trading Commission (CFTC) to oversee digital assets as commodities, provided the underlying blockchain technology is sufficiently decentralized. The bill is scheduled for a vote later this week. In contrast, SEC Chair Gensler expressed his opposition to the bill, arguing that it would create regulatory gaps and undermine existing securities laws. Gensler emphasized the importance of securities laws in providing investors with comprehensive information and protecting against fraud within the crypto industry. He stated, “The crypto industry’s record of failures, frauds, and bankruptcies is not because we don’t have rules or because the rules are unclear. It’s because many players in the crypto industry don’t play by the rules. We should make the policy choice to protect the investing public over facilitating business models of noncompliant firms.”
