Timothy Massad, who headed the Commission commodity futures U.S. (CFTC) from 2014 to 2017, together with the Brookings Institute produced a major study under the title “the time has Come to strengthen the regulation of crypto-assets”, in which he in detail described the steps necessary to ensure legal certainty in a developing industry.
“Congress must resolve the current problems by providing regulatory oversight of the spot market, crypto-assets, trading platforms and other intermediaries present in this market, writes Massad. And the SEC and CFTC have enough competences to regulate in this space. Should be given one of the committees the appropriate authorization. To create a new Agency to solve the problem is impractical. I recommend to make the SEC the primary regulator.”
Currently, cryptocurrency assets in the United States are classified as either securities which fall under the jurisdiction of the SEC, either as commodities, the regulation of which the CFTC is entrusted. Some authorities recognize the digital currency property, which only complicates the problem of supervision of this space.
“When regulatory requirements vary from state to state, ensuring legal compliance becomes a costly process, and the creation of a national market difficult, not to mention international, says Massad. – Our securities market would not have become the envy of the world, if we relied solely on the laws on the control of investment in individual States and would never have passed the law “On securities” and the law “On exchange”securities”.
In his report, Massad describes a number of principles that will allow to give an answer to the most pressing challenges in the cryptocurrency space, such as risks of fraud, manipulation, cyber attacks, illegal payments, as well as decentralized storage and management of assets and ICO.
“I believe that the SEC adhere to the correct approach when the traditional doctrine applies to the recognition of the process of distribution of one or another crypto-asset distribution of the securities. The only thing you need to do is to strengthen law enforcement and give the SEC sufficient authority to enable it to provide the best guidance regarding the regulation of various types of crypto-assets,” adds Massad.
Adjunct Professor, School of legal Sciences of new York University drew Hincks said Masada significant for the future regulation of cryptocurrency in the United States.
“It’s not the regulator, who says: “I ran that office for five years, and that’s what I think.” Obviously, he is aware of the current situation in the industry, he Hinks The Block. – If this report gets to the right member of Congress can pursue further action. If he passes the right member of Congress, it will be one more voice screaming into the void”.
Organization of representatives of the crypto-industry CoinCenter supported the idea of creating a unified regulation, however, in her opinion, the appropriate authority should be transferred to the CFTC.
“We in the future could support the creation of a new unified Federal regulator for trusted participants of the cryptocurrency ecosystem (exchanges, custodians, etc.), but this needs to be amended to the existing vague and hinders innovation state laws on licensing of service providers for remittances that apply to the cryptocurrency activity,” said the organization. Discuss current news and events on the Forum
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