Historic Crypto Regulation Bill Passes House with Strong Bipartisan Support

By Madz Dizon

May 23, 2024 02:46 AM EDT

Historic Crypto Regulation Bill Passes House with Strong Bipartisan Support(THIBAUT DURAND/Hans Lucas/AFP via Getty Images) (Credit: Getty Image)

The US House of Representatives passed a bill on Wednesday that seeks to establish a fresh legal framework for cryptocurrencies, despite receiving an uncommon warning from the US securities regulator regarding potential new financial risks. 

US Congress Approves Landmark Crypto Bill

Reuters reported that the bill grants oversight authority over most forms of cryptocurrency to an agency that is perceived as more industry-friendly.

This decision raises the question of whether President Joe Biden will go against his own SEC chairman and refuse a veto, especially as former President Donald Trump actively courts the industry in his 2024 presidential campaign.

The Financial Innovation and Technology for the 21st Century Act, sponsored by Republicans, was passed with a bipartisan vote of 279-136. The Senate's decision on whether to take up the measure remains uncertain.

Proponents of the bill in the US Congress assert that it will bring about regulatory clarity and foster the expansion of the industry.

The House has given its approval, coinciding with the US Securities and Exchange Commission (SEC) indicating its likely approval of applications for spot ether exchange-trade funds. This unexpected development is set to provide a significant boost to the industry.

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SEC Chair Opposes Crypto Bill

According to Politico, the SEC's recent actions against companies and individuals accused of violating federal regulations in the crypto space have provided Trump with a new talking point as he seeks support from crypto backers.

During a dinner at Mar-A-Lago, Trump urged attendees to vote for him, emphasizing the importance of their support.

Meanwhile, SEC Chair Gary Gensler expressed his opposition to the House legislation, stating on Wednesday that it would enable crypto issuers to independently declare their crypto as a commodity instead of a security. This would provide the SEC with only 60 days to assess the classification. 

The bill received support from proponents of cryptocurrency and industry groups who have consistently seen Gensler's SEC as a barrier to the broader acceptance of digital assets.

Highlighting prominent prosecutions, fraud cases, bankruptcies, and failures, Gensler has consistently argued for cryptocurrencies to be held accountable to the same regulations as other assets.

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