(Reuters) – The U.S. Home of Representatives on Wednesday handed a invoice geared toward creating a brand new authorized framework for digital currencies, regardless of an uncommon warning from U.S. securities regulators that the measure might create new monetary dangers.

The Republican-sponsored twenty first Century Monetary Innovation and Know-how Act handed the Home with a bipartisan vote of 279 to 136. It’s unclear whether or not the Senate will take up the invoice.

Supporters of the invoice in Congress argue it might deliver regulatory readability and encourage progress within the business.

The Home approval alerts that the U.S. Securities and Change Fee (SEC) is more likely to approve the Spot Ether exchange-traded fund's software, a shocking enhance for the business.

However SEC Chairman Gary Gensler mentioned in an announcement that the invoice would “create new regulatory gaps, undermine many years of precedent for oversight of funding contracts, and expose buyers and capital markets to untold dangers.”

The invoice was backed by cryptocurrency advocates and business teams who’ve lengthy considered Gensler's SEC as an obstacle to widespread adoption of digital property.

Gensler factors to high-profile prosecutions, fraud circumstances, bankruptcies, and bankruptcies and argues that cryptocurrencies must be topic to the identical legal guidelines as different property.

He mentioned in an announcement Wednesday that underneath the invoice, funding contracts recorded on blockchain would now not be thought-about securities and could be denied investor protections underneath securities legal guidelines.

Amongst different criticisms, Gensler mentioned the invoice would enable issuers of crypto funding contracts to certify that their merchandise are digital merchandise not topic to SEC oversight, which the federal government company might problem in simply 60 days.