Pennsylvania Senator Pat Toomey is asking questions of the federal Securities and Exchange Commission on their oversight on the growing world of cryptocurrency.
Many new cryptocurrencies are joining the market and Toomey says there should be a level of regulation over these entities. However, he told CNBC that the SEC first needs to determine what cryptocurrencies are a security.
“The SEC has not laid out clear guidelines on what kinds of cryptocurrencies they view as securities. Their regulatory regime is limited to securities and platforms that trade securities,” Toomey said. “Well, if cryptocurrencies are not securities, than the SEC currently doesn’t have the authority to regulate them.”
Toomey also added that he believes cyrptocurrencies like Bitcoin look more like commodities, and that they can be an effective tool for investors.
“I don’t happen to have a view on the value of a given token, but I do have a view that the value of the underlying technology is enormous. It’s going to transform finance. It’s going to do wonderful things for consumers, generally,” Toomey said. “I don’t want us to stifle the innovation that’s coming out of this space.”
Cryptocurrency is a relatively new investment tool, which essentially allows users to make secure payments and store money without the need to use their name or go through a bank.
Chairman @GaryGensler and the SEC must lay out clear guidelines on what cryptocurrencies they view as securities. Regulation by enforcement is extremely objectionable and will kill domestic innovation.
Watch my full interview with @SquawkCNBC. pic.twitter.com/DLqIFT3SGh
— Senator Pat Toomey (@SenToomey) September 15, 2021
