US Congress evoked about the Crypto regulations by Industry Leaders

The need for having a proper regulation related to crypto trading has been one of a major concern for the government of almost all the nations around the world. The concern to have a proper regulation has raised issues amongst the industry as well due to the fact that no one manipulates the industry and there is no hindrance to the growth of the blockchain industry.

In the “Legislating Certainty for Cryptocurrencies” event hosted by Rep. Warren Davidson, the crypto industry leaders warned the US Congress over uncertainties pertaining the regulation for the crypto trade. In the meeting, experts from Nasdaq, Andreessen Horowitz, Fidelity, Coinbase, and the US Chamber of Commerce have shown their dissatisfaction towards the attitude of the US regulators in the way they have handled crypto regulations.

The uncertainty relating to the regulations of the cryptocurrencies exist because of US Securities and Exchange Commission is using “Howey Test” to define them as securities. The Supreme Courts decision in 1946 elucidated investment contracts as securities. The crypto enthusiasts believe that the law is too old to make decisions on cryptocurrencies as securities.

Carla Carriveau, a former SEC executive, said that US Congress is having the ability to make an impact by initiating moves to change the old standards. This would make SEC’s task simpler to clarify existing laws and make exemptions for cryptocurrencies. According to her, “Congress has to act because the SEC has said what they thought was right, and already what did what they thought they needed to do.”

ICOs in the US who have the potential to make a real impact is finding it difficult to prove their compliance with the SEC since they offer “utility tokens” which are different than security assets and the CFTC should be the one regulating them and not SEC. This risks the continuance of such companies which may cost the US talent and innovation.

Jesse Powell, the CEO of the crypto exchange Kraken said to the US lawmakers, “Foreign companies are able to outraise their US competitors and often whoever raises the most money is who wins.”