Senate Warning to SEC: “SEC Has No Such Power!”

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Senator Pat Toomey surprisingly changed his stance towards crypto in a recent interview with Squawk Box; Toomey now supports the crypto community! Senator Toomey, who was previously in the news for supporting the controversial crypto change in the infrastructure bill, now opposes President Gensler’s vague regulatory vision for the crypto industry and states that he may be violating the SEC’s jurisdiction:

The Senator reminded the CNBC audience that the SEC’s regulatory regime is limited to securities and the platforms that trade them. According to the senator, if certain cryptos are not securities, the SEC has no authority to regulate them.

Sen Toomey Argues Stablecoins Are Not Securities

He criticizes the SEC for failing to provide a clear framework for determining which cryptocurrency the commission considers a security. Senator Toomey expresses concern over Gensler’s argument that stablecoins are securities; According to him, stablecoins do not meet the legal criteria to be classified as securities. That said, the community isn’t planning a war against regulators, but rather, a situation that the SEC and President Gensler have yet to facilitate; explains that they only need a specific policy structure to characterize securities.

“I’m not on the side of thinking that there should never be any regulation on any cryptocurrency … but I think there should be transparency and objectivity about what we’re doing here.”

Sen Toomey Advises to Be Cautious About Crypto Regulations

Senator Toomey also acknowledges that there are market products that meet the criteria for securities, mutual funds, and even money market accounts, and that a regulatory framework should be established for these products. Despite this, however, the Senator warns that the government must be extremely careful with cryptocurrencies.

Toomey underlines that the decentralized space has the inevitable technological and innovative potential to transform financial markets. However, Toomey emphasizes that the government should be wary of stifling innovation rather than regulating the crypto industry:

“I have no idea about the value of a particular token. However, I believe the underlying technology has tremendous value. It will revolutionize finance and do great things for consumers. I don’t want us to stifle innovation.”