SEC Receives Letter from U.S. Lawmakers requesting Clearer Regulations for Crypto Industry

The chairman of Security and Exchange Commission (SEC), Jay Clayton recently received a letter from 15 members of the House of Representatives. In the letter, the lawmakers have requested the agency to share the plans of regulating the crypto industry. The letter stated that “It is important that all policymakers work toward developing clearer guidelines between those digital token that are securities and those that are not, through better articulation of SEC policy, and ultimately through formal guidance or legislation”.

From past some months, crypto experts are calling for the clearer regulations about the crypto industry in the United States. Now policymakers are also pushing the SEC for the same. In the letter, Congress representatives stated that current uncertain treatment of offers and sales of digital tokens is hindering the innovation in the U.S. This uncertainty of treatment could drive the business to the countries where the regulations about the crypto industry are clear. The representatives also requested the SEC to explain the process of determining whether a token is a security or not. It is also suggested that the SEC should create a Frequently Asked Questions (FAQ) guide so that the participants can understand what the agency expecting from them.

According to the U.S. policymakers, it’s time to change the old methods for the new technology. Congress representatives are not alone who want clear regulations for the crypto industry, other industry experts are also suggesting to make clear regulation for treating digital assets. Last week SEC has also received a letter from crypto and non-crypto industry experts cautioning the agency to research regulation before applying.

Because of the seven decades, old Howey Test Bitcoin and Ether are seen as commodities in the United States while other new tokens are considered as securities. On Tuesday, in a roundtable, Coinbase’s Mike Lempres said that “ We all want fair and orderly markets, we want all the same things regulators do. It doesn’t to be done in the same way it was done in past, and we need to be open to that”.