US House Approves Bill to Regulate Crypto

Reading Time: < 1 minute

On Wednesday, the US House of Representatives passed a bill to establish a new legal structure for digital currencies, despite concerns raised by the US securities regulator about potential financial risks.

The Financial Innovation and Technology for the 21st Century Act, proposed by Republicans, received a 279-136 vote in favor. It is uncertain if the Senate will consider the bill. Supporters believe the legislation will bring regulatory clarity and foster growth in the industry.

This development coincides with indications from the US Securities and Exchange Commission (SEC) that it will likely approve applications for spot ether exchange-trade funds, providing a surprising boost to the industry.

However, SEC Chair Gary Gensler cautioned that the bill could create loopholes in regulation and undermine established oversight of investment contracts, putting investors and the capital markets at significant risk.