Biden Does Not Threaten Veto Against House Crypto Market Structure Bill, But ‘Opposes Passage’

The White House opposes the US House of Representatives passing the crypto market structure bill, but the president is not threatening to veto it, which is a positive sign for the crypto industry.

President Joe Biden’s White House issued an executive policy statement on Wednesday saying the administration opposes the Financial Innovation and Technology Act for the 21st Century if it passes Congress, citing concerns about a lack of investor protection. The bill also suggested that the White House would want to work with Congress on future legislation for crypto markets, contrary to previous statements by Securities and Exchange Commission Chairman Gary Gensler, who has repeatedly said he believes the industry does not need specific additional legislation. crypto.

“The Administration is eager to work with Congress to provide a comprehensive and balanced regulatory framework for digital assets, building on existing authorities that will encourage responsible development of digital assets and payment innovations and help strengthen U.S. leadership in the global financial system,” the statement said. . “H.R. 4763, in its current form, lacks adequate protections for consumers and investors engaged in certain digital asset transactions.”

This is the second executive policy statement the administration has issued in recent weeks after threatening to veto a bill aimed at reversing controversial SEC accounting guidance. This bill passed the House of Representatives and the Senate.

The statement came hours after the SEC’s Gensler issued his own dissenting statement on the law, saying it would harm the regulator’s efforts to oversee crypto markets alongside traditional capital markets.

FIT21 will redefine how securities issuers must comply with existing federal law and Supreme Court precedent, the SEC chairman said in a statement.

Proponents of the bill say U.S. law does not allow crypto companies to operate without the threat of litigation; Gensler describes this view as these companies trying to avoid meeting disclosure and other compliance requirements for securities issuers.

The bill would create a new definition specific to digital assets to determine when they are securities or digital commodities and whether the SEC or the Commodity Futures Trading Commission should be the primary spot market regulator. The full House will consider the bill later Wednesday, with a vote scheduled for this afternoon.

The story continues

“The Administration looks forward to continued cooperation with Congress on the development of legislation for digital assets that includes adequate protections for consumers and investors while creating the conditions for innovation, and more time for such cooperation will be needed,” the White House said in a statement on Wednesday. .

UPDATE (May 22, 2024, 14:47 UTC): Adds additional detail.