Fifteen members of the Congress are in the crypto news around regulation recently, after signing a letter and asking the Securities and Exchange Commission (SEC) and its Chairman, Jay Clayton, to clarify the guidelines that the agency uses to determine whether cryptocurrency assets are securities under the federal law.
The letter has already been signed by 15 lawmakers across the political spectrum. In it, the members are asking Chairman Clayton what precisely makes an ICO token or a security – and how he is planning to address the concerns that the SEC’s failure to list definitive guidance is leading many startups out of the country.
“Current uncertainty surrounding the treatment of offers and sales of digital tokens is hindering innovation in the United States and will ultimately drive business elsewhere.”
Later in the letter, the legislators also question the SEC’s decision to use enforcement actions and clarify policy on cryptoassets.
“We believe that the SEC could do more to clarify its position. Additionally, we are concerned about the use of enforcement actions alone to clarify policy and believe that formal guidance may be an appropriate approach to clearing up legal uncertainties which are causing the environment for the development of innovative technologies in the United States to be unnecessarily fraught.”
The lawmakers also asked Clayton to answer three specific questions related to the legal status of ICO tokens and other cryptocurrency assets.
The publication of the letter comes days after Representative Warren Davidson – who is one of the co-signers of the latter – hosted an ICO summit on Capitol Hill in which the representatives from the cryptocurrency and mainstream financial industries asked the Congress to provide a clear regulatory framework for blockchain innovation.
You can read the full letter by clicking on this link.
US Congresswoman Wants Facebook To Pause Its Crypto Plans
“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a crypto-currency until Congress and regulators have the opportunity to examine these issues and take action.”Right now, Waters' fears are warranted. In times when Facebook has a torrid history over its privacy and information handling performances, the CEO of the company Zuckerberg and the COO of Facebook Sheryl Sandberg had to appear before the Congress last year for questioning. The past that Facebook has, mixed with the US Congresswoman's intentions, may definitely halt the very long-awaited project and send shivers down the spine of the crypto community. Right now, it is clear that the Congress wants the social media giant to take things slow. Other lawmakers also said that they need more information regarding the project. The US Congresswoman and Chair Waters and her sentiment shows the following in a letter sent to the Rep. Patrick McHenry, who is another member of her committee:
“It is incumbent upon us as policymakers to understand Project Libra. We need to go beyond the rumors and speculations and provide a forum to assess this project and its potential unprecedented impact on the global financial system.”We don't know if Facebook responded to this letter. But as the coming altcoin news show, even if they did - lawmakers now want to hear more details about the Libra project.
US Banking Committee Senate Sets Hearing For Facebook’s Crypto Project
“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.”On July 16, the US Banking Committee will hold a hearing titled "Examining Facebook's Proposed Digital Currency and Data Privacy Considerations." Jerome Powell, who is the head of the US Federal Reserve, was featured on many best cryptocurrency news sites for his recent announcement in which he said:
“[Facebook] has made quite broad rounds around the world with regulators, supervisors and lots of people to discuss their plans and that certainly includes us.”As government officials in other countries noted, there is a lot of doubts and concerns about the new Facebook project. One of them was the French Minister of Economy and Finance Bruno Le MAire, who noted that the government intends to "ask for guarantees" from Facebook in regards to its Libra cryptocurrency project. Earlier today, other altcoin news spread showing that the Chairman of the Russian State Duma Committee on Financial Markets, Anatoly Aksakov, said that the country won't legalize the use of Facebook's Libra cryptocurrency.
Chinese Tech Giants Believe Crypto Regulation Is Major Concern
Bancor Exchange Plans To Restrict US Residents From Trading
“This decision has been made in light of increased regulatory uncertainty; at this time, we believe this is the most judicious decision for all the members of our ecosystem,” the blog post shared on Bancor exchange reads.It also continues stating that the decision will "enable the Bancor community and ecosystem to innovate faster and with greater clarity." Currently, Bancor runs as a decentralized protocol using a P2P setup. As many best cryptocurrency news sites noted, it is unclear what was the factor that motivated the move. The regulatory situation now involves another decentralized exchange (DEX) named Etherdelta, which did the same thing in 2018 - illustrating the difficulties of operating such a service in the US. Last year, the country's Securities and Exchange Commission (SEC) charged the founder of Etherdelta, Zachary Coburn, with operating an unregistered securities trading platform and a $300,000 fine. Right now, the Bancor exchange is in the latest cryptocurrency news on many websites. As it adds in the blog post, all of its users will still be able to hold and transfer tokens, while conceding that the decentralized portions of its network were beyond its control and would thus remain open to the US traders.
“We would like to clarify that this functionality will be blocked to users accessing the website bancor.network, which offers an interface to blockchain activity. As the Bancor Liquidity Network is a collection of smart contracts on the blockchain, and a non-custodial system, we cannot restrict users from accessing the blockchain itself. This cannot be blocked,” the blog post concludes.If you are new to the latest regulation frenzy in the US, you should know that new international recommendations from the Financial Action Task Force were brought up - placing stringent new ID requirements on any entity and user facilitating crypto trading - both for US residents living in and ones living out of the country.
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