Representative Stephen Lynch discussed H.R. 4763, the Financial Innovation and Technology for the 21st Century Act (Fit21): "Yesterday The Financial Services Committee marked up H.R. 4763, the Financial Innovation and Technology for the 21st Century Act, which unfortunately is a dangerously inept attempt to regulate digital assets market structure. This piece of legislation strips consumer and investor protections, makes reckless changes to established securities law, and injects confusion rather than clarity into our country’s regulatory framework."
Representative Stephen Lynch voted against advancing H.R. 4763, the Financial Innovation and Technology for the 21st Century Act, out of the House Financial Services Committee. The recorded vote showed 35 ayes to 15 nays.
H.R. 4763, the Financial Innovation and Technology for the 21st Century Act is a comprehensive market structure bill that would protect consumers, ensure crypto companies have robust rules, and create clarity for job creators and blockchain builders.
"I have serious concerns about the volatility and risks crypto assets pose to consumers, particularly low-income and underrepresented communities. The collapse of TerraUSD, Celsius, BlockFi, and FTX speaks to the larger regulatory gaps in this space, including lack of corporate controls, inadequate liquidity or reserves, commingling of assets, and irresponsible practices. I worry that these practices exist across the industry and are a result of insufficient oversight. I commend the actions of this administration through its reports, guidance, and executive orders to thoughtfully examine the benefits and risks of crypto products.
The crypto industry, and many of my Republican colleagues, have spun a false narrative that the SEC regulates through enforcement and makes it impossible for the industry come into compliance, when in reality, the SEC is enforcing the laws that congress directed it to and has provided appropriate direction. These arguments also conflict with accusations that the SEC did not go far enough in taking actions to prevent the FTX collapse. This attack on the SEC is a tactic employed by the crypto industry to evade compliance with the law because the industry knows that it would not meet the justifiably high standards that make our financial system the envy of the world. "
