US House passes crypto bill despite warnings from SEC

The bill's supporters in the argue that the bill will provide and help promote the industry's growth.

The House approval comes as the U.S. Securities and Exchange Commission () signals that it will likely approve applications for spot ether exchange-trade funds in a surprising boost to the industry.

But SEC Chair said in a statement that the bill "would create new regulatory gaps and undermine decades of precedent regarding the oversight of , putting investors and capital markets at immeasurable risk."

The bill was backed by supporters and industry organizations who have long viewed Gensler's SEC as an impediment to the wider adoption of digital assets.

Noting high-profile prosecutions, fraud cases, bankruptcies and failures, Gensler has maintained that cryptocurrencies should be subject to the same laws as other assets.

In Wednesday's statement, he said under the bill investment contracts recorded on a blockchain would no longer be deemed securities, denying investors protection under securities laws.

Among other criticisms, Gensler said the bill would also allow issuers of crypto investment contracts to certify themselves that their own products are digital commodities not subject to , leaving the agency just 60 days to challenge this.

Source: Forex-Markets-Economic Times