US Senator Pat Toomey says Congress needs to step in and provide a regulatory framework for cryptocurrency. He emphasized that the US 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 Intervene on Crypto Regulation
US Senator Pat Toomey (R-PA), ranking member of the Senate Banking Committee, discussed cryptocurrency regulation in an interview with Bloomberg on Thursday.
Commenting on whether the US Securities and Exchange Commission (SEC) is too slow in regulating cryptocurrency, he opined: “I think the problem is that the SEC doesn’t share with us the framework they’re using.”
The senator reported on SEC Chairman Gary Gensler stating that most crypto tokens are securities, stating:
Gary Gensler famously argues that almost all crypto tokens are securities. I think reasonable people can disagree on that.
The lawmaker noted that while Gensler would “remove bitcoin from that classification,” he said that “almost everything else…is a security.”
Senator Toomey explained that the SEC chairman “doesn’t go on to say how he applies 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 rules about custody, rules about permission — these things don’t have any application. He didn’t explain about it.”
I think, in fact, Congress should step in and provide some guidance.
“I think crypto is quite 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 that’s why Congress should step in. and provide a framework.”
The legislator concluded:
In the meantime, Chairman Gensler owes us much more clarity about how and why he intends to apply SEC regulations.
Gensler recently revealed that he has asked staff at the Commission to fine-tune crypto enforcement. In addition, he said he has “asked SEC staff to work directly with entrepreneurs to register their stocks and regulate, where appropriate, as securities.” The securities regulator is also setting up a dedicated office to review crypto files.
What do you think about Senator Pat Toomey’s comments and do you think Congress needs to step in and provide a regulatory framework for crypto? Let us know in the comments section below.
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