U.S. Senator Pat Toomey says Congress should step in and provide a regulatory framework for cryptocurrency. He stressed that the U.S. Securities and Exchange Commission (SEC) is not sharing its framework for regulating crypto with lawmakers, noting that Chairman Gary Gensler “owes us much more clarity on how and why he intends to apply SEC regulations.”
US Senator Wants Congress to Step in on Crypto Regulation
U.S. Senator Pat Toomey (R-PA), a ranking member of the Senate Banking Committee, discussed cryptocurrency regulation in an interview with Bloomberg Thursday.
Commenting on whether the U.S. Securities and Exchange Commission (SEC) is too slow in regulating cryptocurrency, he opined: “I think the problem is that the SEC isn’t sharing with us the framework that they are using.”
The senator proceeded to reference SEC Chairman Gary Gensler stating that most crypto tokens are securities, stating:
Gary Gensler famously argues that virtually all crypto tokens are securities. I think reasonable people can disagree with that.
The lawmaker noted that while Gensler “would exempt bitcoin from that classification,” he said that “pretty much everything else … is a security.”
Senator Toomey explained that the SEC chairman “doesn’t go on to say how he would apply the existing frameworks that we use to regulate securities issuance and trading to a very, very new and very different technology where some of these things don’t fit — like custody rules, clearance rules — these things don’t have any application. He hasn’t provided any clarity on that.”
I think, actually, Congress should step in and provide some guidance.
“I think crypto is sufficiently different even if you want to argue that these tokens are securities,” the senator further noted, adding that it is indisputable that cryptocurrencies “are very different from a stock or a bond, and therefore Congress ought to step in and provide a framework.”
The lawmaker concluded:
In the meantime, chairman Gensler owes us much more clarity on how and why he intends to apply SEC regulations.
Gensler recently revealed that he has asked the staff at the Commission to fine-tune crypto compliance. In addition, he said he has “asked the SEC staff to work directly with entrepreneurs to get their tokens registered and regulated, where appropriate, as securities.” The securities regulator is also setting up a dedicated office to review crypto filings.
What do you think about the comments by Senator Pat Toomey and do you think Congress should step in and provide a regulatory framework for crypto? Let us know in the comments section below.
Bitcoin has its back covered by this American senator who believes in the potential of the crypto to bring good things to the U.S. financial sector and economy in general. Senator Cynthia Lummis may be the most prominent champion for the crypto sector in Congress. Her strong support for the cryptocurrency industry distinguishes her from […]
China has become a hotbed of illicit crypto trade lately. The country has earned quite a reputation in the international community when it comes to scams and illegal activities involving cryptocurrencies. Recently, there have been a number of nefarious activities originating from the country or involving Chinese nationals. For instance, in June 2021, more than 200 […]
The Lazarus Group are North Korean hackers who are now sending unsolicited and fake crypto jobs targeted toward Apple’s macOS operating system. The hacker group has deployed malware which conducts the attack. This latest variant of the campaign is being scrutinised by the cybersecurity company SentinelOne. The cybersecurity company found out that the hacker group […]
In a recent event, the Chairman of the United States Federal Reserve, Jerome Powell shared his views about the expansion of Decentralized Finance. He further talked about the impact of DeFi on the conventional finance ecosystem. Powell urged that DeFi requires appropriate regulation to thrive and grow in the future. Powell spoke at the event, […]
India’s law enforcement agency Directorate of Enforcement (ED) froze over $1,5 million deposited in crypto exchange Binance. The funds were deposited in Bitcoin via a transaction tie to crypto exchange WazirX and the Mobile Gaming App called E-Nuggets. Related Reading: Don’t Fight The Fed: FOMC Meeting Is Most Volatile For Bitcoin Ever According to a […]
As more expansions and innovations in cryptocurrency emerge, many nations are utilizing its unlimited possibilities hence, the development and exploration of central bank digital currency (CBDC) are increasing in several countries. Many problems are associated with traditional banking in the global system today. These issues have spiked the need and demand for an alternative in […]