SEC Chairman Gary Gensler believes that the FIT21 bill will lead to a regulatory gap and undermine investment contract regulation precedent

According to TechFlow, SEC Chairman Gary Gensler has raised objections to the 21st Century Financial Innovation and Technology Act (FIT21), arguing that the bill will lead to a regulatory gap, undermine investment contract regulatory precedents, and put investors and capital markets at risk.

He noted that the bill could take cryptocurrencies out of SEC oversight and hinder investor protection efforts.

Gensler also expressed concerns that the bill would leave the cryptocurrency market largely unregulated and exclude cryptocurrency trading platforms from the definition of an exchange, increasing investor risks.