US Lawmakers Demand More Focused Monitoring of Crypto Markets
One US Financial Services official is looking to make lawmakers provide more support and monitoring into ICOs and cryptocurrency trading after throwing shade on the current market and describing it as “muddy.”
Michigan Republican Bull Huizenga has been said to have brought up his concerns on the 26th of July in front of Congress must collaborate with regulators and ensure absolute protection of all investors involved in cryptocurrency trading.
As per the regulations introduced, the SEC and CFTC, as well as other US entities, would seize more control as the representative stated. His own opinion goes as acknowledging the difficulties for lawmakers in regards to the classification of cryptocurrencies. He says that no one can determine what exactly to classify cryptocurrencies and assets as and thus a large problem is presented.
As far as crypto-tech has evolved over a decade and seen its widespread adoption, so has criminal activity involved in the digital scene. Scams, hacking attempts, money laundering and more are consistently rising everywhere and resulted in an outcry by marker officials for the proper response by officials.
SEC director William Hinman that no decisions to classify Ether, Ethereum’s native token, as a security. Additionally, he stated that any related tokens based on the non-security could possibly qualify as securities given their shares in companies that they offer. Cryptocurrencies or initial coin offerings such as these are the most promising candidates in terms of security classification and will depend on the selling method aimed at the public.
Bitcoin was not deemed as a security according to SEC Chair, Jay Clayton. According to the Clayton, these types of cryptos and initial coin offerings are the ones in dire need of more regulation and proper monitoring to provide security for participants against any attempts at fake investments. He stated that proper and adequate regulation was required to handle this situation and even launched a website displayed as an ICO to prove their points in terms of security. Since the beginning of this year, reports have indicated that more than $17B has been raised in total by initial coin offerings as opposed to last years $3.6B.