US Securities and Exchange Commission (SEC) Chairman Gary Gensler opposed the bill called “Financial Innovation and Technology in the 21st Century”. This bill, known as FIT21 for short, aims to resolve legal uncertainties in the cryptocurrency industry and clarify the jurisdictional boundaries of the SEC and the Commodity Futures Trading Commission (CFTC).
“FIT21 creates new legal loopholes and defies decades of precedent on how investment contracts are supervised, putting investors and capital markets at great risk,” Gensler said in a statement today.
Stating that cryptocurrency companies can label their products as “decentralized” and escape SEC oversight, Gensler said this could jeopardize not only the cryptocurrency industry but also the $100 trillion capital market.
“What will happen if pump-dumpers claim that they are not subject to securities laws by labeling themselves as crypto investment contracts or declaring themselves as decentralized systems?” Gensler asked.
