Congress will soon reconvene later this month to debate a variety of issues. One of the items on the agenda will be regulating cryptocurrency, and how they will go about it. The Senate Banking Committee’s ranking member, Pat Toomey, is quite eager to address this issue in the senate.
Pat Toomey also made a public press statement about the issue of regulation. He said that legislators and regulators should do more than just get suppress or ignore technologies like cryptocurrency. They need to recognize that these types of open networks are not going anywhere. On the contrary, they are growing at a rapid pace, and will soon be out of control. Instead, they should work on laws and regulations that better adapt to the current market.
Without a doubt, the initiative to regulate cryptocurrency has reached an all-time low across the board. The lack of motivation to regulate the market even made committee chairwoman Sen. Elizabeth Warren speak out. She more specifically put the US Securities and Exchange Commission’s lack to proactively regulate cryptocurrency.
Warren further voiced her displeasure for the SEC’s ineptitude to its chairman Gen Gensler. She wrote that both uses of and demand for cryptocurrencies and crypto exchanges have risen greatly. However, ordinary investors are left in the hands of manipulators and fraudsters due to a lack of common-sense regulation by the SEC.
The chairwoman further continued that regulatory gaps such as these can endanger investors and consumers. More importantly, these gaps can also undermine the safety of various financial markets. She concluded that the SEC should use its power to address these risks, while Congress should work on better regulating the market. Only with both arms of the government working together, will investors feel safe in the crypto marketplace.
On the other hand, there is the issue that the SEC cannot act unilaterally. In the end, the SEC depends on Congress to allow them to exercise their authority. In response to the letter, Gen Gensler said that he worries a lot of people get hurt if the SEC fails to address these issues.
One of the reasons why there haven’t been many efforts towards regulating cryptocurrency is the generational gap. Without a doubt, a significant chunk of the congressional leadership is not on the same wavelength as their constituents. Due to this generational gap, political leaders have not been able to understand these newer investing trends.
Many believe that politicians in congress are unable to grasp just how big these investment trends are getting. But even some of them do understand, they do not know how best to handle it.