Senator Pat Toomey of Pennsylvania has criticized the Securities and Exchange Commission (SEC) for lacking a crypto regulatory platform.
In a September 15 interview with Bloomberg Markets and Finance, the senator criticized SEC chairman Gary Gensler for failing to recognize that cryptocurrencies are distinct from conventional financial instruments such as equities and bonds.
He highlighted that Gensler should emphasize the methodology he employs to oversee cryptocurrencies while rejecting the SEC’s position that the vast majority of digital assets are securities.
According to Toomey, who is also the ranking member of the Senate Banking Committee, Bitcoin (BTC) and similar assets cannot be classed as securities since they vary from the rest of the market.
In the lack of a regulatory framework from the SEC, the congressman pushed Congress to assume the responsibility. Notable is the fact that Wyoming Senator Cynthia Lummis has introduced a bill trying to give a complete reference to crypto laws.
Given that cryptocurrencies represent a new kind of investment that requires a distinct strategy, the congressman emphasized that the SEC should provide clear custody and clearance standards.
“I believe crypto is sufficiently distinct. Even if you like to claim that these tokens are securities, you are free to do so, but you cannot deny that they are vastly different from a stock or a bond,” he noted.
Gensler continues to face criticism from crypto advocates who accuse him of stifling the industry by neglecting to establish a regulatory baseline.
Notably, the United States is now building a framework for crypto rules. Still, picking an appropriate regulator from the SEC and Commodity Futures Trading CFTC.
CFTC Chairman Rostin Behnam, on the other hand, has said that the agency is already prepared to regulate cryptocurrencies. He said that CFTC authorities have started drafting regulations for a sector of the bitcoin market.
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