U.S. lawmakers intend to introduce a bill to protect cryptocurrencies from SEC regulation.

Following a recent congressional hearing with Libra, Congressman Tom Emmer outlined a new U.S. cryptocurrency bill that aims to provide legal protection for token sales to shield them from SEC enforcement actions.

The Republican Congressman from Minnesota argues that U.S. authorities should only apply securities regulations to cryptocurrencies that meet traditional securities standards.

Transparency Needed for Blockchain

Emmer points out that while most blockchain companies, especially those in the U.S., strive to comply with regulations, authorities continue to move the regulatory goalposts. This creates uncertainty, making it difficult for the blockchain sector to operate legally in the country. Emmer further states:

Companies that comply with our current regulations, even if they are confusing, should be able to provide their digital assets to the public and help build a truly decentralized network.

I plan to introduce a U.S. crypto bill to protect token sales, provided they fully comply with existing securities regulations. This would allow blockchain companies to conduct legitimate cryptocurrency token sales without fear of strong regulatory opposition.

Since the end of the ICO boom, the SEC has issued multiple cease-and-desist orders. They recently settled with Block.one, the parent company of EOS, over its $4 billion ICO sale and filed a lawsuit earlier this month against Telegram for its multi-billion dollar private sale.

In addition, Republican Congresswoman Sylvia Garcia recently introduced a bill to classify stablecoins, including Tether USDT and Paxos PAX, as securities. This bill seems to target the stablecoin proposed by Libra.

Previously, a member of Congress pointed out that Libra's registration in Switzerland was an attempt to evade taxes. Emmer is concerned about this move but criticizes committee members who he believes should not completely dismiss its underlying technology and impose sanctions. He stated in Congress:

Committee members seem to spend no time learning about new technologies and question tech companies irresponsibly.

U.S. Drawing Lines on Cryptocurrency

According to reports, Patrick McLain, co-founder of San Francisco blockchain accelerator MouseBelt, also emphasized that Congress's attitude towards cryptocurrencies is far from positive, stating:

These legislators have drawn lines and are essentially saying the U.S. does not welcome cryptocurrencies and will do everything to stop them, including resisting some of the best innovations worldwide.

Tom Emmer previously served as co-chair of the Congressional Blockchain Caucus and has introduced bills to exempt cryptocurrency forks from taxes. If his cryptocurrency bill gains support in the House, it could signify a major turning point: cryptocurrencies finally breaking free from their biggest adversary, the SEC.

Further Reading

• China Embraces Blockchain Technology and Begins Regulating Anti-Blockchain Speech
• Lebanese Banks Struggle: Cryptocurrencies Sweeping the Traditional Financial System

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