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SEC Chair Gary Gensler criticized the Financial Innovation and Technology for the 21st Century Act (FIT21), stating that it would create regulatory gaps and undermine investor protections. The joint bill aims to clarify crypto oversight by the SEC and Commodity Futures Trading Commission, but Gensle...

SEC Chair Gary Gensler criticized the Financial Innovation and Technology for the 21st Century Act (FIT21), stating that it would create regulatory gaps and undermine investor protections. The joint bill aims to clarify crypto oversight by the SEC and Commodity Futures Trading Commission, but Gensler argues that it ignores precedent, removes investor protections, and may increase risks for the public. He also raised concerns about the bill's definition of digital commodities and its potential impact on broader capital markets.

The bill is set for a House vote, but its passage through the Senate and becoming law this year is uncertain. The Financial Innovation and Technology for the 21st Century Act would hurt investors and hamper the U.S. Securities and Exchange Commission's work, SEC Chair Gary Gensler said Wednesday. "FIT 21" would create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk," he said.

FIT21 is a joint bill produced by the House Agriculture Committee and the House Financial Services Committee, and is intended to clarify how the SEC and Commodity Futures Trading Commission (CFTC) oversee crypto. It creates a "digital commodity" term for digital assets that do not meet the bill's definition of a security, placing those assets under the CFTC's purview. According to Gensler, FIT21 ignores long-standing precedent for how investment contracts are regulated, puts the agency into a tough position for certifying self-proclaimed digital commodity issuers, ignores Supreme Court precedent in the Howey Test, removes investor protections and potentially allows investors to take on excessive risk without appropriate disclosures.

U.S. securities laws were developed after the Great Depression to protect consumers by forcing disclosures and giving both the regulator and investors tools to safeguard customers, Gensler said. Crypto industry participants have not been willing to comply with these regulations, he said. "The bill would remove investment contracts that are recorded on a blockchain from the statutory definition of securities and the time-tested protections of much of the federal securities laws," he said. "By removing this set of investment contracts from the statutory list of securities, the bill implies what courts have repeatedly ruled – but what crypto market participants have attempted to deny – that many crypto assets are being offered and sold as securities under existing law."

While the bill includes a provision for companies to self-certify that they're issuing "digital commodities," it gives the SEC 60 days to assess whether those assets meet the bill's definition of a digital commodity. That is not enough time given just how many digital assets are circulating, he said. Gensler also took aim at how the bill defined a digital commodity, saying it ignored the Howey Test precedent and the economic realities of assets. Between that, the investor protection framework the bill sets in place for crypto investors and the exclusion of exchanges, the bill may "increase risk to the American public," he said.

FIT21 might also harm the U.S.'s broader capital markets, Gensler said, by letting companies try to avoid SEC oversight by using some sort of decentralized network. The House of Representatives is expected to vote on the bill later on Wednesday, though it does not currently have a clear road through the Senate and is unlikely to become a law this year.

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Technical Analysis Report: Market Trends and Indicators

Based on the analysis of moving averages and the Relative Strength Index (RSI), the stock market is currently exhibiting a bullish trend, with strong upward momentum. The 50-day moving average has crossed above the 200-day moving average, signaling a potential long-term bullish trend.

Furthermore, the RSI indicator is approaching overbought levels, suggesting a period of sustained buying pressure. However, it's essential to note that the market is approaching key resistance levels, indicating a potential for a temporary pullback or consolidation.

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In summary, while the market is currently bullish based on moving averages and RSI, caution is advised due to approaching resistance levels and heightened volatility indicated by the Bollinger Bands.

More about Meta Platforms Inc.
Meta Platforms Inc. Technical Analysis Summary

Meta Platforms Inc. (Meta) Technical Analysis Summary

Meta Platforms, Inc. develops products for global connectivity through various devices. The company is headquartered in Menlo Park, California and operates in the technology and computer programming, data processing, etc. services sector.

Key Technical Indicators:

  • Market Cap: $1,189,226,742,000
  • Current Price: $26.96
  • Price Change: $0.50
  • 52-Week Range: $17.39 - $55.67
  • Relative Strength Index (RSI): 55.67
  • Volume: 142,711,996,000
  • 50-Day Moving Average: $470.82
  • 200-Day Moving Average: $1.141
  • Bollinger Bands: 0.273

More about Match Group Inc

Company: Match Group Inc

Business: Match Group, Inc. offers dating products globally. The company is headquartered in Dallas, Texas.

Industry: TRADE & SERVICES, RETAIL-RETAIL STORES, NEC

Market Cap: 8070983000

Current Price: 13.35

Dividend Yield: None

P/E Ratio: 2.25

EPS: 12.59

Price/Book: 0.19

Volume: 3437027000

52 Week High: 37.95

52 Week Low: 0.057

Change: 0.092

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