White House Takes Stance Against Proposed Crypto Legislation

The White House has expressed opposition to the bipartisan cryptocurrency regulation bill set to be discussed in the House on Wednesday, as reported by Politico.

The Biden administration has raised concerns that the bill lacks adequate safeguards for consumers and investors participating in digital transactions.

Despite this, the administration did not directly threaten to veto the Financial Innovation and Technology for the 21st Century Act, which is seen as favorable for cryptocurrency advocates.

The outcome of the vote may provide insight into the level of support the cryptocurrency industry has on Capitol Hill.

The White House’s statement followed comments by SEC Chair Gary Gensler, who criticized the bill, warning that it could create regulatory loopholes and jeopardize investor and market stability.

Representative Gerry Connolly of Virginia, ranking member of the House Subcommittee on Cybersecurity, Information Technology, and Government Innovation, also issued a statement prior to the House vote, emphasizing the need for a robust regulatory framework for digital assets to encourage investment and innovation while safeguarding the public from industry volatility, abuse, and fraud.

However, Connolly expressed disappointment in the Financial Innovation and Technology for the 21st Century Act, stating that it fails to bring stability to an industry plagued by speculation and collapses of major players. He criticized provisions such as self-certification of compliance, regulatory exemptions from established securities laws, and relaxed consumer protection measures as insufficient to meet the standard expected of U.S. leadership in the global financial system.