White House Will Not Veto FIT21 Cryptocurrency Bill

The White House just communicated its position on the Financial Innovation and Technology for 21st Century Act. President Biden says he will not threaten to veto it. The policy statement also expresses the government’s opposition to FIT21. 

U.S President Joe Biden’s administration has put out a statement of administration policy today. In the document, the Biden administration says it opposes the passage of the bill.

Also Read: FIT21 Bill Advances: Congress Moves Closer to Clarifying Crypto Regulations

The policy statement also expressed the government’s commitment to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets.

White House Will Not Issue a Veto Threat

The U.S government, through the policy document released today, has promised it will not threaten to Veto the bill as earlier communicated.

The Financial Innovation and Technology for 21st Century Act abbreviated as FIT21, has been heavily opposed by the government. Biden’s administration cites loopholes in the bill that could potentially expose investors to multiple risks.

Also Read: Democratic Leaders Won’t Whip FIT21 Despite Opposition: Report

FIT21 seeks additional recognition of Congress by the government. The bill suggests that the White House should work closely with Congress to administrate crypto-related matters in the future. If acted upon by the White House, this move could circumvent the Securities and Exchange Commission.

White House Eager to Work With Congress

An excerpt from the statement of administration policy document reads:

The Administration is eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, which will promote the responsible development of digital assets and payment innovation and help reinforce United States leadership in the global financial system.

The Biden Administration

This statement also mentions that the FIT21 bill lacks sufficient protections for the investing public.

Gary Gensler Opposes FIT21

Gary Gensler statement aggressively opposing #FIT21:

“…many players in the crypto industry don't play by the rules. We should make the policy choice to protect the investing public over facilitating business models of noncompliant firms.”

Here’s to a big bipartisan vote today. pic.twitter.com/NHJ5Px8McK

— Alexander Grieve (@AlexanderGrieve) May 22, 2024

The new update on the policy came just a few hours after SEC’s Gary Gensler expressed his strong opposition to FIT21. In his statement, he says many players in the crypto industry are not operating within the rules, exposing investors to high risks.

Cryptopolitan reporting by Collins J. Okoth