Monday, June 17, 2019

Congressman David Soto Declares SEC an Unfit Suitor for Cryptocurrencies

The battle for classification of new cryptocurrencies and ICOs continues to drag on as congressman Darren Soto lends his voice on the tussle between SEC and CFTC.

Give Crypto to the Best Suitor

The topic of which regulators should oversee digital currencies and assets have long been a subject of intense debate, with the majority of regulators in the United States pining for digital assets to be deemed securities, which inadvertently places them under the watch of the SEC—Security Exchange Commission.

US congressman, Darren Soto, a current member of the House of Representatives representing a district in Florida has now waged in on the issue, declaring that SEC is not a better suitor for cryptocurrency exchanges. Speaking in an interview with Cheddar, the congressman argues that the Commodities and Futures Trading Commission (CFTC) and Federal Trade Commission (FTC) should retain the jurisdiction over cryptocurrencies instead, unlike the winning sleight of SEC.

Soto, a long-time advocate for the growth of digital assets and virtual currencies in the United States just notably introduced a bipartisan bill – Token Taxonomy Act – in agreement with fellow Congressman, Warren Davidson, to exclude cryptocurrencies from standard securities laws. Rather than consider cryptocurrencies as securities, Davidson and Soto believe that digital currencies were bound to have faster growth and development under the watch of CFTC rather than the brutish SEC. Advising SEC to concern itself with real securities alone, Soto told Cheddar why CFTC’s approach might just be better.

CFTC

The [CFTC and FTC] are agencies with a lighter touch, and we have grown consensus among the industry that they’d be appropriate for the majority of these types of cryptocurrency transactions and the nature of these assets,” he said.

While a good percentage of digital currencies are considered to be securities in the US by the SEC, some of the major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) are deemed to be futures instead because of their high degree of decentralization. This, therefore, puts coins like ETH and BTC under the jurisdiction of CFTC and FTC.

Maintaining U.S. Competitiveness

One of the major reasons driving Soto’s piqued interest in the SEC-CFTC tussle and Davidson’s Token Taxonomy Act is the clamor to ensure the United States stays at the forefront of things. With countries like Switzerland and Malta courting away potential cryptocurrency startups, Davidson and Soto see the new act as a way of clearing any uncertainties and ensuring clarity. Soto commented on the need for the United States to retain its competitive edge.  He told news channel, Cheddar:

“We have sometimes taken for granted that the U.S. dollar is the foundation of the world economy, and how that creates stability and advantage […] As cryptocurrency becomes more utilized, that advantage could go away… [we] need to make sure we are aggressive and a fertile place for cryptocurrency transactions and for technology companies to be here.”

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