Cryptocurrencies don’t require SEC’s Supervision: US Congressman
January 11, 2019 11:51 am
On January 10, in an interview with the financial news channel Cheddar, Darren Soto, United States congressman asserted that many cryptocurrencies should not be under regulations of the country’s securities regulator. The Congressman believes that cryptocurrencies should be supervised by the Commodities and Futures Trading Commission (CFTC) and Federal Trade Commission (FTC) instead of being labeled as securities under the Securities and Exchange Commission (SEC)’s rule.
Darren Soto is a Democrat and a member of the U.S House of Representatives for the 9th District of Florida. He was also the leader of the bipartisan effort for the promotion of pro-crypto regulatory environment in the country. Congressman Ted Budd was also the part of it.
Furthermore, he advocates for the urgency to establish agencies’ jurisdictions with more transparency and to develop detailed classifications for cryptocurrencies. The congressman argues that imposing federal securities laws “can be very intense and hurt the market unless it is truly security.”
He further highlights:
“We’ll be saving the SEC for true securities, knowing predominately that those are commodities and currency transactions. The [CTFC and FTC] are agencies with a lighter touch, and we have grown consensus among the industry that they’d be appropriate for the majority of these types of cryptocurrency transactions and the nature of these assets.”
Soto also advocates against the stringent regulations with the intent to keep up the nation’s global competitiveness. The need for taking proactive steps in favor of the crypto industry is long overdue.
Moreover, He said:
“We have sometimes taken for granted that the U.S dollar is the foundation of the world economy, and how that creates stability and advantage […] As cryptocurrency becomes more utilized, that advantage could go away… [we] need to make sure we are aggressive and a fertile place for cryptocurrency transactions and for technology companies to be here.”
The United States does not have a single regulatory body to supervise crypto industry. There has been a long debate about whether the digital currencies should be identified as commodities or securities.