Regulatory pressure on cryptocurrencies is increasing day by day. At this point, companies and regulators are proposing to work collaboratively. US Senator Patrick Toomey urged action on regulations in a letter to SEC Chairman Gary Gensler.
Senator Toomey: “Things Could Have Been Different If There Was Clarity In Crypto Arrangement”
Toomey, who soon submitted a bill on crypto transactions, is asking SEC Chairman Gary Gensler for clarity on the way the institution regulates crypto firms. Toomey argues that the current regulation is causing billions of dollars in losses for American investors and stifling financial innovation.
In his letter dated July 26, Toomey emphasized the bankrupt companies such as Celsius and Voyager and said;
“If the SEC had given clear regulation to crypto firms, things might have been different right now. Companies could avoid investor losses by adjusting their product offerings accordingly, and the SEC could focus its enforcement efforts on bad actors.
Whatever the value of SEC or state-based enforcement action, the SEC’s failure to provide clear information to the crypto community is hurting not only investors but innovation as well. Rather than regulation, the SEC generally prefers enforcement by enforcement.
In this case and elsewhere, the SEC apparently had a clear view on why it considered these digital assets to be securities, but did not make that opinion public before launching an enforcement action. There are many reasons to be skeptical of the SEC’s view that most digital assets are securities.”
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