Days Could be Numbered for SEC Role in Crypto

Days Could Be Numbered for SEC Role in Crypto

A new law is under consideration that, if becomes legislation, could see the SEC’s role in cryptocurrency regulation come to an end.

The bill set to be introduced, the Token Taxonomy Act, has been formulated by pro-crypto Republican Warren Davidson and Florida Democrat Darren Soto.

The main point of conflict with the industry is the labeling of certain cryptocurrencies as securities and not as assets, particularly after SEC Chairman Jay Clayton‘s declaration earlier this year that cryptocurrencies and ICOs would be classed as securities by the US financial regulator.

Clayton’s comments were made despite SEC William Hinman commenting in June that both Bitcoin and Ethereum were not securities because their platforms don’t have a controlling body. Davidson commented on the plans to introduce the new bill; one that could potentially remove SEC from the picture, a fact that would be a great Christmas present for many cryptocurrency investors around the US:

“In the early days of the internet, Congress passed legislation that provided certainty and resisted the temptation to over-regulate the market. Our intent is to achieve a similar win for America’s economy and for American leadership in this innovative space.”

The Republican crypto trailblazer went on the point out that such as change would have the effect stabilizing the industry and adding further much-needed clarification to investors, many still hanging on decisions to be made by the SEC regarding ICOs and EFTs. He added that a law such as this would ensure that “securities laws would not apply to cryptocurrencies once they become a fully functioning network”.

Last week SEC Senior Adviser for Digital Assets and Innovation Valerie A Szczepanik indicated that in certain circumstances, ICOs may be able to avoid registration requirements.

Speaking in New York at a gathering hosted by the Wall Street Blockchain Alliance, the SEC official has suggested that in certain cases an application doesn’t fit SEC law or regulation “but that it perfectly fits the spirit accomplishing all the goals of investors protection”.

 

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