Toomey Presses Gensler for Regulatory Clarity on Cryptocurrencies
Washington, D.C. – U.S. Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) is asking Securities and Exchange Commission (SEC) Chairman Gary Gensler to provide public guidance surrounding emerging technologies like cryptocurrencies.
In
a letter
to Chairman Gensler, Sen. Toomey said:
“For investors to benefit from a fair
and competitive marketplace, regulators must proactively provide rules of the
road to industry. Unfortunately, the SEC has instead adopted a strategy of
regulation-by-enforcement in this area.”
During
last week’s Senate Banking Committee hearing, Senator Toomey raised concerns
over the SEC’s regulation by enforcement approach to cryptocurrencies.
“At the hearing, you noted the SEC’s
success in pursuing crypto-related enforcement actions,” Senator
Toomey continued. “In many of these enforcement actions, the SEC did not
identify the securities involved or the rationale for their status as
securities, which would have provided much-needed public regulatory
clarity. This approach appears related to your belief that ‘the
probability is quite remote that . . . any given [cryptocurrency] platform has
zero securities.’ However, the SEC has a responsibility to do more than just
provide probabilistic estimates.”
Senator
Toomey’s concern with the SEC’s lack of regulatory clarity on digital assets is
shared by others, including SEC
Commissioners Hester Peirce and Elad Roisman.
The
senator concludes by requesting answers to a number of detailed questions to
provide Congress, industry and innovators clarity on the SEC’s regulation of
cryptocurrencies.
“In
an effort to obtain that additional guidance, attached are questions for the
record for the recent hearing. Many of them would give industry clarity on
developing promising technologies within the confines of existing laws and
regulations. Please provide detailed answers so that innovators have the
guidance they need to ensure domestic investment and innovation in these
technologies.”
To
read Senator Toomey’s full list of questions for Chairman Gensler, click
here.
To
read the letter, click
here.
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