US officials criticize SEC over cryptocurrencies

The U.S. House Finance Committee has endorsed billionaire Mark Cuban's criticism of the SEC's approach to the cryptocurrency industry.

In a May 11 social media post, the committee explained why Congress should pass the Financial Innovation and Technology for the 21st Century (FIT21) Act.

US House Committee Believes FIT21 Act Will Solve Cryptocurrency Regulation Issues

This weekend, Cubans took to social media to express their concerns about the impact of the SEC's stance against cryptocurrencies... President Joe Biden's re-election bid. Cuban continued his criticism of the financial regulator in a social media post on May 11, saying the commission and its chairman, Gary Gensler, were "trying to destroy the cryptocurrency industry."

"The crypto industry wants a way to register and comply. It wants a way to avoid speculative noise. Instead, the SEC is making things too expensive, time-consuming, and difficult for those who want comply.” alongside real businesses. "It's true."

In response, I confessed The Finance Committee of the United States House of Representatives shares Cuba's concerns. Highlighting that the SEC's current approach hinders the industry's ability to comply. Therefore, the Committee is pushing for the FIT21 Act to close these regulatory gaps.

The Committee believes that the legislation will provide much-needed clarity and consumer protection. The law will also end SEC regulation through an enforcement approach and allow the U.S. digital asset ecosystem to thrive.

Additionally, upcoming legislation seeks to define the responsibilities of the CFTC and the SEC. Under the proposed legislation, the CFTC would expand its oversight to include crypto products. While the regulatory scope of the Securities and Exchange Commission regarding cryptocurrencies offered as investment contracts will be clarified.

“The Financial Innovation and Technology for the 21st Century Act is the culmination of years of bipartisan efforts to finally provide clarity... This legislation will strengthen U.S. leadership of the global financial system for decades to come. come and will strengthen our role as an international center. for innovation,” said Patrick McHenry, chairman of the House Financial Services Committee.

Notably, efforts to advance the FIT21 Act have continued since committee approval in July 2023, with a vote expected in the coming weeks. Interestingly, the bill received support from key stakeholders in the crypto industry. Bitcoin ETF issuer Grayscale said the proposed law “is a welcome effort to bring regulatory clarity to the cryptocurrency ecosystem.”

Likewise, Matt Korva, general counsel at Consensys, said the settlement would help clarify the regulatory mess created by federal agencies.

“Regulation may be timely to clean up the mess created by agencies beyond their authority and the APA that has gone unchecked for too long. This will not happen (without) compromise, but sensible regulation will move things forward for market participants and innovators. and consumers, He stated Curve.