PUNCH AND JUDY’s Post

SEC Chair Gensler Opposes FIT21 Act, Rising Concerns Over Investor Protections SEC Chair Gary Gensler has spoken out against the bipartisan Financial Innovation and Technology for the 21st Century Act (FIT21), expressing worries that it may compromise investor safeguards and lead to regulatory loopholes. Gensler's apprehensions revolve around the bill's potential to circumvent established securities regulations and the Howey Test. He also highlighted the provision allowing companies to self-certify as "digital commodities" within 60 days, which he believes lacks adequate protection. Despite industry support, prominent Democrats have also voiced dissent, citing the bill's potential erosion of legal precedents and heightened exposure to unregulated investments. While FIT21 aims to delineate the SEC and CFTC's roles in supervising crypto assets, Gensler cautioned that it may introduce new regulatory gaps and weaken investor protections. # Thank you Valentina Cruz for your submission!

Congrats to our legislature in passing Financial Innovation and Technology for the 21st Century Act (FIT). https://lnkd.in/eqFTK5cx. - Powerful (and consequential) legislation on Crypto passed with overwhelming bipartisan support - Protecting consumers, strengthening transparency and accountability with market participants with disclosures - Protecting digital asset customer-serving institutions by establishing clear lines between the SEC and CFTC More news to come in this space.

🚨 Breaking News: U.S. House of Representatives Passes FIT21 Act for Clearer Digital Asset Regulation! 🚨 On May 22, 2024, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) with overwhelming bipartisan support. This landmark legislation is a significant step towards a comprehensive regulatory framework for the digital asset ecosystem in the United States. What does FIT21 mean for the industry? 🔹 Balancing Innovation and Consumer Protection: FIT21 ensures essential consumer protections while fostering an environment conducive to responsible innovation in the digital asset space. 🔹 Clarity on Regulatory Roles: The Act designates clear oversight roles, with the CFTC overseeing digital commodities and the SEC regulating digital assets offered as securities. 🔹 Secondary Market Trading: FIT21 allows for the secondary market trading of digital commodities initially offered as securities, boosting market liquidity and value. 🔹 Stronger Market Practices: The Act imposes stricter requirements on digital asset exchanges and custodians, including robust customer disclosures and operational safeguards. 🔹 Enhanced Transparency and Accountability: FIT21 mandates accurate project information from developers and clear risk disclosures from customer-serving institutions. 🔹 Protecting Innovation: The Act provides a clear process for determining regulatory jurisdiction, protecting legitimate digital asset projects from unnecessary burdens. What's Next? With the House's approval, FIT21 now moves to the Senate for consideration. The industry remains optimistic about the bill's potential to establish a stable and predictable environment for digital assets in the U.S. Stay tuned for updates and join the conversation on how FIT21 will shape the future of digital assets! Source: https://lnkd.in/gKry7wPR #Blockchainlawyer #Blockhain #DigitalAssets #CryptoRegulation #US #FIT21 #Innovation #Finance #TechNews #Legislation #RegulatoryFramework

CODA law is what the US needs, not FIT21! FIT21 is one of the most important bills for US crypto industry. It will protect digital asset customer-serving institutions by: 1. Establishing clear lines between the SEC and CFTC; and 2. Creating comprehensive registration regimes to permit them to lawfully serve customers in digital asset markets. But really, it wont help the US much unless it has a new token law! What is holding the US back is its ability to legislate new computer code generated digital assets law and I coined that new asset class as CODA!

The US House of Representatives is about to vote on the most comprehensive crypto-focused legislation to date: The Financial Innovation and Technology for the 21st Century Act. This bill isn't perfect, but moving it forward is positive for DeFi: something the US should strongly support. Thoughts on FIT21 and why DeFi should flourish in the US HERE:

House Passes Financial Innovation and Technology for the 21st Century Act with Overwhelming Bipartisan Support Source: ##us #house #passes #financial #innovation #technology #act #bipartisan #support #digitalassets #cryptoassets Highlights: Today, the U.S. House of Representatives passed H.R. 4763, the “Financial Innovation and Technology for the 21st Century Act,” in a watershed moment for the U.S. digital asset ecosystem. FIT21 provides the robust, time-tested consumer protections and regulatory certainty necessary to allow digital asset innovation to flourish in the United States. FIT21 establishes clear and functional federal requirements over digital asset markets. It provides the robust consumer protections and regulatory clarity necessary for the digital asset ecosystem to thrive in the U.S.—cementing American leadership of the global financial system of the future while reinforcing our role as a hub for innovation. The legislation provides the Commodity Futures Trading Commission (CFTC) with new jurisdiction over digital commodities and clarifies the Securities and Exchange Commission’s (SEC) jurisdiction over digital assets offered as part of an investment contract. Additionally, the bill establishes a process to permit the secondary market trading of digital commodities if they were initially offered as part of an investment contract. Finally, H.R. 4763 imposes comprehensive customer disclosure, asset safeguarding, and operational requirements on all entities required to be registered with the CFTC and/or the SEC. FIT21 will protect consumers by strengthening transparency and accountability with market participants: - Digital asset developers will be required to provide accurate, relevant disclosures, including information relating to the digital asset project’s operation, ownership, and structure; and - Digital asset customer-serving institutions, like exchanges, brokers, and dealers will be required to: • Provide appropriate disclosures to customers; • Segregate customer funds from their own; and • Reduce conflicts of interest through registration, disclosure, and operational requirements. FIT21 will strengthen the market by protecting digital asset projects: - Digital asset developers will have a pathway to raise funds; and - Participants will have a clear process to determine which digital asset transactions are subject to the SEC’s jurisdiction and the CFTC’s jurisdiction. FIT21 will protect digital asset customer-serving institutions by: - Establishing clear lines between the SEC and CFTC; and - Creating comprehensive registration regimes to permit them to lawfully serve customers in digital asset markets.

The U.S. House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21). This pioneering bill aims to establish a comprehensive regulatory framework for digital assets and cryptocurrencies, providing much-needed clarity and fostering innovation. Read our latest post to explore the key components of the FIT21 Act, its economic implications, and the road ahead. #CryptoRegulation #DigitalAssets #FIT21 #Blockchainstakes

We have all heard the phrase, "You get what you pay for," and while we nod our heads in agreement, we also enjoy "free" things. In the world of investment and trading, the landscape varies significantly across different regions, each shaped by its own set of regulations, practices, and business models. Today's piece will look at the difference between "free" investment services in the U.S. and the fee-based model in Switzerland and Liechtenstein to differentiate how these countries' investment professionals cover the costs of their services. This debate will force investors to weigh 'free' offerings against safeguarding personal data and financial independence. What price are you willing to pay for your financial privacy and independence? #Investing #DataProtection #FinancialIndependence #WealthManagement

On 8 January 2024, the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 entered into force, creating the Digital Securities Sandbox within which certain Financial Market Infrastructures will be able to test the use of developing technologies subject to a modified legislative framework. The government has also published an Explanatory Memorandum which sets out the background and purpose of the Regulations. #Securities #FinancialMarkets

On 8 January 2024, the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 entered into force, creating the Digital Securities Sandbox within which certain Financial Market Infrastructures will be able to test the use of developing technologies subject to a modified legislative framework. The government has also published an Explanatory Memorandum which sets out the background and purpose of the Regulations. #Securities #FinancialMarkets