US Congress – Billionaire365

The US Congress Demanded The SEC To Clarify The Cryptocurrency Regulations Situation

On September 28th, a group of US congressmen sent a letter to the president of the Securities and Exchange Commission (SEC), Jay Clayton, asking him to clarify the regulatory framework surrounding cryptocurrency. The message, presented by more than a dozen congressmen, is a step for the securities laws to be modified to include cryptos.

The document was sent a few days after a meeting between representatives of the cryptocurrency ecosystem, congressmen and traditional market investors. Congressmen highlighted the lack of clarity regarding the SEC decisional process regarding whether a crypto token is a security or not.

Additionally, in the letter, they asked the SEC to clarify whether a token could be analyzed separately from the purchase contract, which in turn could become an offer of value. If so, they question whether the resulting token would be treated as a value.

The SEC keeps alive the dilemma surrounding the crypto tokens issued via ICOs

The SEC has cataloged Bitcoin (BTC) and Ethereum (ETH) as commodities, so their regulation is not related to the SEC, but to the CFTC. In the case of other cryptos, such as tokens, the SEC has indicated so far that it will use the Howey test to determine whether they are values or not. But this instrument does not cover the variety of characteristics crypto tokens sum up.

The US Congress also questioned the SEC chief if he agrees with the past statements of the director of corporate finance, William Hinman, who pointed out that the cryptos coming from Initial Coin Offerings (ICOs) should be regulated as securities, a measure that until now is not contemplated by the cryptocurrency regulations.

Also, on September 25th, a meeting was held in Washington DC between Wall Street investors, US congressmen and representatives of the cryptocurrency ecosystem, in which they discussed aspects to prepare a draft law for more explicit cryptocurrency regulations. On that occasion, cryptocurrency companies stressed that, without a clear regulatory framework, the US would lose its advantage in this industry.

Anna Galvez

Bitcoin (BTC) And Cryptocurrencies, In General, Criticized During The US Congress Session

On July 18th, the US Congress was the scene of several discussions on cryptocurrencies, in general, and Bitcoin (BTC), in special. Federal Reserve (FED) Chairman Jerome Powell and Democratic Senator Brad Sherman used their speeches in the Chamber to express their negative views on the issue.

Powell said that, despite their growth and the interest they have generated in the population, the cryptocurrencies are not yet large enough to compromise the country’s economic and financial well-being. The head of the FED expressed his displeasure with the issue, assuring that these tools are not among the priorities of the institution he heads. For him, they are assets for money laundering and pose significant risks to investors.

Also, he assured that the FED is not working on adopting its own cryptocurrency. For him, most crypto holders sell and pay in dollars, and he added that cryptocurrency is not a right way to preserve value because of its volatility.

Despite the negative US Congress views on cryptocurrencies, the US SEC might approve Bitcoin (BTC) ETFs trading

But despite pointing out the criminal uses of cryptocurrencies, Powell’s position was not as openly negative as that of Brad Sherman, a congressman and member of the California House of Financial Services. For him, the federal government must ban U.S. citizens from investing in cryptocurrency.

In the United States, authorities are watching out for illegal activities with cryptos as well as their legal status. A House subcommittee recently held a hearing to address the anonymity of cryptos transactions, raising concerns about the possible use of these assets for illicit purposes.

For its part, the Department of Justice, in conjunction with the U.S. Futures Trading Commission, could be on the trail of possible illegal practices that could influence the bitcoin market, especially regarding trading activities.

The Securities and Exchange Commission (SEC) received more than 60 comments, mostly in favor of Cboe Global Markets’ request for approval of Bitcoin (BTC) ETFs, an issue that has been on the company’s agenda and has been taken up again by the company. Most commentators highlight the benefits that investors in that country would obtain from the acceptance of Bitcoin (BTC) ETFs trades.

Anna Galvez