Sen. Pat Tommy of Pennsylvania presented a list of more than two dozen questions regarding cryptocurrency regulation in a letter to Gary Gensler, chairman of U.S. Securities and Exchange, on Friday, requesting that the regulator provide more clarity on his approach to digital assets.
“In order for investors to benefit from a fair and competitive market, regulators must actively enforce the rules of the road,” wrote the Senate Banking Committee’s ranking Republican. “Unfortunately, the Securities and Exchange Commission (SEC) has instead adopted a control-by-enforcement strategy in this area.”
Tommy said the SEC has taken effective action against digital asset providers for failing to register with the agency as a public issuer of securities, but has failed to identify the rationale for their position as securities or securities involved, which would provide much-needed public regulatory clearance.
The senator asked Gensler to explain in detail why he believes in stable currencies, or cryptocurrencies that are designed to maintain their value against the US dollar DXY.
Earlier this month, Gensler said, it could be considered securities under U.S. law and therefore under the authority of the SEC.
Stablecoins, including Tether USDTUSD
And USD Coin USDCUSD,
As crypto has become an important tool in the market, Bitcoin facilitates transactions between different digital assets such as BTCUSD,
And ether ETHUSD,
During the hearing, Gensler said, “Congress has drawn a broad brush in determining the extent of the market it seeks to control.” “It actually includes about 35 different things in the definition of security.” Tommy asked Jensler to specify which of these definitions applies to stable coins.
The Pennsylvania Republican also asked Gensler to explain why the SEC used bitcoin and ether as products, despite the chairman’s earlier statement that most of the digital assets are securities. Tommy pointed to a 2018 article in the New York Times, when Jensler suggested that Ether had a security at the time of its creation but was later transformed into a product location.
“The idea is that [ether] Could be transformed into a product because ‘its development has become more decentralized’ showing conflict with your past statements that all ICO Token Securities, ”Tumi writes. Awaiting decision, can you clarify your position on how to decentralize the token adequately in light of your previous positions? “
The semi-official status of Bitcoin and Ether as a product নেই there is no official SEC or court directive on the matter, only the legally non-binding statements of previous SEC officials দিয়েছে has given the resource advantage over other new cryptocurrencies whose issuers face potential lawsuits at SEC agencies.