US Senator urges Congress to take action on crypto

Senator Pat Toomey is suggesting that Congress should step in with legislation if the SEC couldn't provide enough guidance on crypto assets.
Senator Pat Toomey is suggesting that Congress should step in with legislation if the SEC couldn't provide enough guidance on crypto assets.

Senate Banking Committee’s ranking member and Pennsylvania Senator Pat Toomey is suggesting that Congress should step in with legislation if the United States Securities and Exchange Commission (SEC) couldn’t provide enough guidance on crypto assets.

In a statement released by the Senate Banking Committee on Friday, Toomey expressed his dissatisfaction with SEC head Gary Gensler’s comments on the differences between securities and commodities in relation to crypto projects and stablecoins. The senator challenged the SEC’s apparent differences in enforcement proceedings between crypto firms and advisory services firms, such as Glass Lewis, which was accused of giving “fraudulent and deceptive material” in a similar scenario.

Notably, in November, SEC chair Gary Genser said that crypto would not end well without a good regulatory framework.

Toomey further added that federal agencies should answer how new and emerging technologies fit under existing regulations for investors’ betterment in the competitive marketplace. He went on to say that “Chairman Gensler’s failure to provide clear rules of the road for cryptocurrencies underscores the need for Congress to act.”

What would Jerome Powell do about crypto?

The SEC is trying every method to regulate and centralize the crypto industry, but the crypto exchanges seem to avoid cooperation. Recently, as TheCoinRise reported, SEC chair Gary Gensler even urged exchanges to talk.

Toomey has previously stated that he supports the US government introducing a central bank digital currency and that he will vote for Jerome Powell, President Biden’s choice for the next Federal Reserve chair. Previously, Jerome Powell said that the Fed is not rushing CBDC and its implementation.

Congress has not yet taken action on crypto as Toomey indicated; both the House and Senate were busy adopting a bill to keep the government funded through February 18 to prevent a shutdown. The “Further Extending Government Funding Act” was signed into law by President Biden on December 3.