US legislator calls for congressional intervention on crypto regulations

Pat Toomey, a Senator from Pennsylvania and a senior member of the Senate Banking Committee, suggested that Congress should step in legislation in the event that the Securities and Exchange Commission (SEC) fails to provide sufficient guidance on cryptocurrencies.

In an announcement released Friday by the Senate Banking Committee, Toomey said he was dissatisfied with the answers SEC chairman Gary Gensler gave about the differences between securities and commodities regarding token and stablecoin projects. The senator questioned some of the apparent disparities in enforcement actions between crypto companies and consulting firms like Glass Lewis over similar allegations of providing “fraudulent and misleading information.

So that investors can benefit from a fair and competitive market, federal agencies should answer questions about whether and how new and emerging technologies fall under existing regulations,”Explained Toomey. “President Gensler’s failure to provide clear cryptocurrency regulations underscores the need for Congress action.

Previously, Toomey supported the initiative that would see the US government launch a central bank digital currency, and indicated that he would vote in favor of the candidate chosen by President Joe Biden as the next Federal Reserve chairman, Jerome Powell. Additionally, the senator spearheaded a two-party effort in August to amend some of the provisions in the recently passed infrastructure law to exclude developers, miners and other crypto players. Several US lawmakers have proposed solutions to tax reporting requirements following Biden’s passage of the law. A few months ago, Toomey stated that Congress would find itself forced to “to do so in subsequent legislation.

Related: Lawmakers Reject Crypto Provisions in Infrastructure Act

While Congress has not yet acted on crypto as suggested by Toomey, both the House and Senate were busy passing a law to extend funding for the US government until February 18, thus avoiding a closure. Yesterday, President Biden enacted the “Further Extending Government Funding Act.”

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legislator calls congressional intervention crypto regulations

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