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US Securities Commission may lose control over cryptocurrency

02/06/2019
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In the US, controversy is raging about whether the SEC should be left with full control over the cryptocurrency market. Congressman Darren Sato spoke in favour of transferring some of the powers in the commission on trade and commodity futures - CFTC and FTC.

Causes of conflict and its consequences

The too strict attitude of the Securities Commission to cryptocurrency forces industry representatives to lobby for workaround solutions. So the SEC during 2018 did not dare to approve the trading of the Bitcoin ETF fund. Moreover, in early 2019, the decision was also not made.

This was motivated by the fact that now there is no infrastructure for new financial assets. However, there is a possibility that the SEC simply does not have an understanding of the processes taking place. In part, the commission acknowledged this itself, and at the end of January announced the search for an information provider. In its notification, the Commission said that it needed to receive data:

  • on the volume of trade operations with cryptocurrencies;
  • about pricing system and current quotes;
  • about existing registries of the blockchain.

In this case, all information should be presented in a format that can be quickly checked. Somewhat surprisingly, the SEC is only now interested in such information. Perhaps the reason was the initiative of Congressman Darren Sato.

He said that not all cryptocurrencies require SEC regulation. Some tokens can be transferred to the Office of other Commissions, which will increase the adaptability of the entire financial system. The bill was submitted to Congress at the end of 2018, and if adopted, it can drastically change the balance of power. It notes that the blockchain was created not as a security, but as a means of payment. Therefore, the transfer of all powers to the SEC hinders the development of the country's financial system.

According to the author of the law, cryptocurrencies do not need total control. Authorities need only superficial supervision. Otherwise, the US financial system will be an outsider to promote modern methods of payments and investment.

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