According to CNBC, Lawmakers from the US Congress has sent a letter to the Securities and Exchange Commission (SEC) demanding clarity in cryptocurrency regulations that have been put in place.
Clarity of Regulations
According to the report released by CNBC, more than half of the United States Congressmen have asked Clayton to inform investors how the SEC seeks to regulate digital or virtual currencies. These Congressmen asked for clarity on the criteria for the identification of digital tokens or assets as investment contracts and securities. Additionally, the clarity should include the description of the necessary tools that the commission will use to offer more concrete guidance for innovators in the cryptocurrency field.
The letter submitted by the Congressmen reads; “it is necessary that policymakers work towards the development of clearer guidelines between the digital currencies or assets that are securities, and those that are not”. This is done through the articulation of SEC policy through formal guidance and legislation.
Concerns of The Congressmen
These lawmakers have reportedly expressed great concerns regarding the uncertainty surrounding the treatment of sales and offer of digital or virtual assets because, in their view, it impedes the innovation in the United States, as well as being able to drive business and innovation into other aspects or jurisdictions.
According to the letter sent by the Congressmen, they believe that formal guidance may be a fine approach to clearing out certain legal uncertainties which are the causing environment for the development of certain innovative technologies in the US.
Cryptocurrency Round-table Hosted by Davidson
Just last week, Warren Davidson one of the Congressmen hosted a crypto round-table that saw in attendance over 45 representatives from some of the top Wall Street firms and cryptocurrency companies. At this round-table, these industry experts expressed their worries regarding the possible regulation of the crypto sphere and then told lawmakers that there is lack of regulatory clarity for ICO’s (Initial Coin Offering) and digital assets.
Most of the representatives that came for this round-table argued that the current regulations that have been put in place by the Securities and Exchange Commission (SEC) were not just vague, but also outdated, and does not represent cryptocurrencies at large. One of the representatives of the round-table Joshua Stein, who is the CEO of Harbor, one of the leading security firms in the country stated that cryptocurrency and security regulations do not work in regards to utility tokens in (decentralized applications). Stein went further to add that the current security laws are just appropriate for traditional securities and that they are not a good fit for the ICO industry.
According to the report, these Congressmen seek to ensure that all in the cryptocurrency industry understand how it is run as well as the policies that regulate these cryptocurrencies. Most of the laws and policies that have been put up by the SEC are not clearly defined and could pose as a huge challenge to those seeking to comply with these laws.
Want to read more blockchain and crypto news? Visit our news page.