{"id":12964,"date":"2021-10-29T17:22:01","date_gmt":"2021-10-29T16:22:01","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=12964"},"modified":"2021-10-29T17:22:09","modified_gmt":"2021-10-29T16:22:09","slug":"congressmen-seek-clarity-from-sec-chief-gensler-on-crypto-regulations","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/congressmen-seek-clarity-from-sec-chief-gensler-on-crypto-regulations\/","title":{"rendered":"Congressmen seek clarity from SEC chief Gensler, on crypto regulations"},"content":{"rendered":"\n
Congressmen Warren Davidson, Tom Emmer, Ted Budd, Anthony Gonzalez, and Trey Hollingsworth have written to the US SEC <\/a>Chair, requesting clarification on crypto regulations.<\/h5>\n\n\n\n
\"Congressmen<\/figure>\n\n\n\n

The news follows a Bloomberg piece that discussed the SEC's “significant jurisdiction” over tokens like Tether. It had suggested, citing sources, that the US Treasury's next regulatory report will establish the SEC\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>‘s overriding power in the industry.<\/p>\n\n\n\n

As a result of this, Davidson remarked,<\/p>\n\n\n\n

\u201cThe crypto industry deserves regulatory clarity when it comes to yield products and stablecoins<\/a>.\u201d<\/p><\/blockquote>\n\n\n\n

He went on to say that he's requesting this clarification from the SEC in order for innovation to thrive in the United States.'<\/p>\n\n\n\n

The SEC chair has previously advocated for greater investor protection in the DeFi ecosystem. It resulted in a slew of industry crackdowns, including the cancellation of Coinbase's crypto Lend program and an investigation into stablecoins. Other cryptocurrency companies, such as Celsius Network and BlockFi Inc., were also on the watchdog's radar for similar deals.<\/p>\n\n\n\n

Congressman Emmer had argued in this context that Gensler “believes that almost all tokens are security,” and that he “adamantly disagrees.”<\/p>\n\n\n\n

As a result, the Members of Congress have written a letter requesting “additional information on the SEC's interpretation of existing case law.” They're looking for information on asset-backed stablecoins and crypto yield products in particular.<\/p>\n\n\n\n

They cite previous case laws such as Marine Bank v. Weaver and Reves v. Ernst & Young in their quest for clarity and to avoid ‘innovation-stifling uncertainty.'<\/p>\n\n\n\n

It's worth noting that the Reves case is frequently cited when determining whether a transaction involves a “security.” According to crypto lawyer Byrne, the Supreme Court in the case of Marine opined that the definition of “security” is context-dependent.<\/p>\n\n\n\n

Having said that, the above-mentioned Members of Congress anticipate a written response from Gary Gensler <\/a>on the following key issues by \u2018no later than November 19, 2021′:<\/p>\n\n\n\n