Ramazan Eles 
The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has voiced his opposition to the proposed legislation titled “Financial Innovation and Technology for the 21st Century Act.”
Referred to as FIT21, this bill aims to clarify legal uncertainties in the cryptocurrency sector and delineate the jurisdictional boundaries between the SEC and the Commodity Futures Trading Commission (CFTC).
In his statement today, Gensler warned, “FIT21 would create new legal loopholes and contradict decades of precedent on how investment contracts are regulated, putting investors and capital markets at immeasurable risk.”
Gensler expressed concern that cryptocurrency companies might label their products as “decentralized” to evade SEC oversight, a move he believes could endanger not only the cryptocurrency space but also the broader $100 trillion capital market.
He questioned, “What if pump-and-dump schemers decide to label themselves as a crypto investment contract or declare themselves as a decentralized system to avoid securities laws?”
For more information on the potential implications of the FIT21 legislation and the SEC’s stance, stay updated with the latest financial news.