WASHINGTON, D.C.— Cantrell Dumas, Director of Derivatives Policy, issued the following statement regarding a Better Markets fact sheet on the Financial Innovation and Technology for the 21st Century Act, which will be voted on in the House of Representatives this week.

“The crypto legislation pending in the House raises serious questions about investor, consumer, markets, and financial stability protections, as outlined in our fact sheet. Whether one supports or opposes any legislation, consideration of these key issues should inform the debate.

“That debate should recognize that the preeminent status of the U.S. capital markets is at stake. That’s because unleashing crypto crooks on investors and our capital markets without proper protections puts the reputation of our markets as the best place for investors around the globe to send their money at risk. Investors only send their money here because the U.S. markets are well-regulated, and investors correctly believe that while their investment might lose money, they won’t be wantonly ripped off and lied to about their investments. That’s why it is vital for everyone to ask the hard questions about any claimed regulation of crypto.

“Congress should consider whether this legislation could potentially open loopholes to avoid SEC regulation, similar to unregulated derivatives before the 2008 crisis. Legislators must also ask if the resources provided to the CFTC in the bill are adequate for an already underfunded agency. Without proper funding, adding more mandates to the CFTC will inevitably and significantly compromise the agency’s ability to fulfill its vital roles that all Americans depend on and benefit from. Fully funding the CFTC should be the priority, and only then should any consideration be given to adding more work for the agency.”

The fact sheet can be found here.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.