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US Congress Urged to Introduce More Extensive Cryptocurrency Regulations

While certain regulatory authorities such as the Securities and Exchange Commission (SEC) in the United States have been focusing a lot of their efforts on cryptocurrencies this year, there is still a lack of wide-ranging cryptocurrency regulations.

Now a Congressman by the name of Bill Huizenga has called for the United States Congress to place more of their focus upon this area of concern. He wants additional oversight to be introduced, especially when it comes to the likes of initial coin offerings (ICOs) and the token markets in general.

He is of the belief that Congress should be giving powers to the likes of the Commodity Futures Trading Commission (CFTC) and the SEC for ensuring that compliance is met by the respective parties with regards to what standard stocks and currencies have to adhere to.

These moves would help investors to be better protected, as well as providing additional transparency to those involved in the market.

To date, there has been no common ground or agreement that has been reached between Democrats and Republicans on the topic of cryptocurrency regulation. While they concede that a new regulatory framework is needed, action has yet to be taken on this issue.

The prevailing issue that divides parties is how a given digital token is categorized. Traditionally, the likes of the SEC have labeled the majority of digital tokens as being securities, whereas others argue that they are actually utility tokens and therefore should not be required to follow the securities laws.

This has led to trouble developing in the form of court cases and lawsuits between the SEC and numerous high profile ICOs.

Huizenga does have a background in finance, being a Financial Service Committee member, as well as chairing the Capital Markets, Securities and Investment Subcommittee.

It is hoped that new oversight and regulatory framework will be introduced sooner rather than later, as companies in the cryptocurrency space continue to get more and more mature.

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