Reuters The U.S. House of Representatives on Wednesday passed a bill that aims to create a new legal framework for digital currencies, despite an unusual warning from the U.S. securities regulator it could create new financial risks.

The Republicansponsored Financial Innovation and Technology for the 21st Century Act passed in a bipartisan 279136 vote. It is not clear if the Senate will take up the measure.

The bill39;s supporters in the U.S. Congress argue that the bill will provide regulatory clarity and help promote the industry39;s growth.

The House approval comes as the U.S. Securities and Exchange Commission SEC signals that it will likely approve applications for spot ether exchangetrade funds in a surprising boost to the industry.

But SEC Chair Gary Gensler said in a statement that the bill would create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk.

The bill was backed by crypto supporters and industry organizations who have long viewed Gensler39;s SEC as an impediment to the wider adoption of digital assets.

Noting highprofile prosecutions, fraud cases, bankruptcies and failures, Gensler has maintained that cryptocurrencies should be subject to the same laws as other assets.

In Wednesday39;s statement, he said under the bill investment contracts recorded on a blockchain would no longer be deemed securities, denying investors protection under…