Gensler & Biden Speak Out Against FIT21 Act

SEC Chair Gary Gensler says he strongly opposes the Financial Innovation and Technology for the 21st Century Act (FIT21), citing major concerns about investor protection and market integrity. President Biden has also signaled opposition but stopped short of threatening a veto.

What’s the Scoop?

• Regulatory Concerns: Gensler opposes FIT21, arguing it undermines decades of securities regulation.
• Investor Risks: He claims FIT21 would allow crypto firms to self-certify as "decentralized," putting them outside the SEC's oversight and risking investor protection.
• State of Legislative Support: Major crypto groups and presumptive GOP presidential candidate Donald Trump support FIT21 as a necessary modernization of outdated securities laws. The U.S. House of Representatives plans to vote on FIT21 soon, and even House Speaker Nancy Pelosi is considering the bill.
• Biden Opposition: While the White House opposes the bill over concerns about investor protections, it is not threatening a veto. This shows they are open to working with Congress on future bipartisan legislation.

Bankless Take

Gary Gensler's opposition to the FIT21 Act is expected but disappointing, particularly considering the bipartisan history of the bill. 

As Republicans lead the vote in our industry, it would be wise for Democrats to come around and reassess the issue of crypto with fresh eyes as the election approaches. Many speculate this may be the reason for the ETH ETF’s likely approval, with the White House’s stance now potentially reinforcing this view. A good thing too as proponents of FIT21, like Stand With Crypto, make it clear that crypto support spans the political spectrum, especially among Gen Z.

In the end, Gary’s stance just increases the importance of voicing your support for the bill.

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