United States lawmakers have recently taken a notable interest in the crypto space with several sessions being held on the same as well as several sittings with blockchain enthusiasts and developers. Most recently, a group of United States Congress lawmakers have written to the securities and exchange commission (SEC), seeking an audience with the chairman of the body Jay Clayton. The letter called for clarity on the regulatory aspect when it comes to cryptocurrencies. A report by CNBC revealed that quite a number of congressmen had reached out to the chairman of the SEC, Jay Clayton in a bid to get him to spell out to investors, how his body intends to regulate cryptocurrencies.
To be specific, the congressmen requested clarity on the criteria for identifying digital tokens as investment contracts and therefore securities. The SEC was also required to reveal the tools it would put to use in order to provide more concrete guidance to innovators in that field. The letter by the congressmen to the head of the SEC read: “it is important that all policymakers work toward developing clearer guidelines between those digital tokens that are securities ad those that are not, through better articulation of SEC policy, and, ultimately, through formal guidance or legislation”
The congressmen expressly showed concern towards the uncertainty revolving how offers and sales of tokens would be treated. This was because, in their view, the uncertainty in that regard was hindering innovation in the united states and had the potential of driving away business to other places that had more clear guidelines and regulations. The congressmen further stated in their letter that: “we believe that formal guidance may be an appropriate approach to clearing up legal uncertainties which are causing the environment for the development of innovative technologies in the united states to be unnecessary fraught”
The whole inquiry on the regulation of tokens could have been brought up by congressman Warren Davidson hosting a crypto roundtable with over 45 representatives from major wall street firms and crypto startups. The crypto experts and wall street professionals expressed heavy concerns on any possible regulations in the crypto space. They also informed the lawmakers on the pronounced lack of regulatory clarity for initial coin offerings and digital currencies. Some of the industry leaders argued that a lot of the regulations were not only unclear but also quite outdated. According to the current regulatory laws only applied to traditional securities meaning that there needed to be an urgent revision of the regulations in order to provide clarity lest a crisis would ensue in the industry leading to a migration out of the market.
