WASHINGTON-– The House has passed legislation that seeks to create a new legal framework for digital currencies, even though the SEC has said it could create new financial risks.
The Republican-sponsored Financial Innovation and Technology for the 21st Century Act passed by a vote of 279-136 vote. Despite the margin, it is still unclear whether the Senate will also take up the bill.
According to proponents, the bill will provide regulatory clarity and help promote the growth of digital currencies, which remain controversial but are being explored in a number of countries.
The House action on the bill comes at the same time the Securities and Exchange Commission (SEC) said it will likely approve applications for what are known as “spot ether exchange trade funds.”
Chairman Expresses Opposition
But the SEC’s chairman, Gary Gensler said in a statement he believes 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."
As CUToday.info has reported, Gensler has long stated his belief cryptocurrencies should be subject to the same laws as other assets.
In his statement following the House vote, Gensler said that under the bill investment contracts recorded on a blockchain would no longer be deemed securities, which would deny investors protection under securities laws.