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US Securities Regulator Opposes Adoption of Cryptocurrency Law
(Reuters) – The U.S. securities regulator on Wednesday urged U.S. lawmakers not to adopt a bill that seeks to create a new legal framework for digital currencies, saying it would undermine existing legal precedents and expose securities markets. capital at an “immeasurable risk”.
The U.S. House of Representatives is expected to take up the Republican-sponsored Financial Innovation and Technology for the 21st Century Act on Wednesday, which would partly determine which agencies have jurisdiction over which digital assets. Supporters of the bill in Congress say it will provide regulatory clarity, helping to promote growth in the industry.
The legislation faces an uncertain fate in the US Senate, but comes as the US Securities and Exchange Commission (SEC) signals it will likely approve applications for spot ether trading funds, in a surprising boost for the sector .
But SEC Chairman Gary Gensler said in a statement that the bill would “create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk.”
The bill is supported by cryptocurrency advocates and industry organizations who have long viewed Gensler’s SEC as an obstacle to broader adoption of digital assets.
Noting high-profile prosecutions, fraud cases, bankruptcies and bankruptcies, Gensler argued that cryptocurrencies should be subject to the same laws as other assets.
In Wednesday’s statement, he said that under the law, investment contracts recorded on a blockchain would no longer be considered securities, denying investors the protection afforded by securities laws.
Among other criticisms, Gensler said the bill would also allow issuers of cryptocurrency investment contracts to certify to themselves that their products are digital commodities not subject to SEC oversight, leaving the agency only 60 days to dispute it.
(Reporting by Douglas Gillison; Editing by Rod Nickel)