House of Representatives push crypto bill, put CFTC at the helm

Crypto regulation in the United States is very close to getting its first federal regulator in the face of the CFTC

After an expected vote on Wednesday, May 21, the Commodity and Futures Trading Commission (CFTC) is going to be the regulator most likely in charge of the crypto sector and to be assigned regulatory functions over digital assets hosted on a decentralized blockchain.

This is a huge step forward for the industry, as it gives it theoretical clarity as to whom it should take its cue from and could soon mean an end to the days when companies such as Ripple and Ethereum are forced to tip-toe around volatile and ill-defined regulation.

The bill sponsored and backed by Republicans, received strong Democratic support, with Nancy Pelosi whipping up endorsement among her party members. Dubbed the Financial Innovation and Technology for the 21st Century Act, this seminal piece of legislation aims to give further regulatory clarity and help promote the industry’s growth within the country, giving the United States a keen edge.

Yet not everyone is happy with this development. For one, the US Securities and Exchange Community chair Gary Gensler has cautioned that the bill would create regulatory gaps and undermine decades of “precedent regarding the oversight of investment contracts.”

His criticism remains unchanged to this very day. Gensler believes that crypto assets should be subject to the same regulation as other assets, explaining that there were already enough high-profile cases involving fraud, bankruptcies, and failures, which should wake up legislators to the dangers of spurring growth without the necessary consumer safeguards in place.

Gensler’s main fear remains that crypto companies will use the new legislation to certify themselves as digital commodities and avoid SEC oversight, which could lead to much deeper economic issues.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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