Key Takeaways from U.S. Senate's Latest Crypto Inquisition

Here are key takeaways from the U.S. Senate's latest crypto inquisition, which took place on Tuesday on Capitol Hill.

Earlier today, the United States Senate Committee on Banking, Housing, and Urban Affairs held a full committee hearing entitled “Examining Regulatory Frameworks for Digital Currencies and Blockchain” to discuss the viability of existing policies and regulations governing the U.S. crypto industry.

Crypto industry executives including Circle CEO Jeremy Allaire were present at the hearing to address issues in the implementation of regulatory frameworks used by the traditional financial sector to provide oversight on the cryptocurrency market.

Circle CEO calls for clear cryptocurrency regulations
At the hearing led by Chairman Mike Crapo, the committee touched upon recent developments in the crypto industry in the likes of the potential launch of the Libra cryptocurrency and regulatory frameworks surrounding the crypto sector, particularly the usage of securities laws to categorize different crypto assets.

Allaire stated that there exists a fundamental mismatch between the current structure of policies the government uses to oversee the crypto market and the nature of cryptocurrencies in general.

Since 2018, the U.S. Securities and Exchange Commission (SEC) has strictly enforced securities laws to regulate the cryptocurrency sector, leading the agency to determine whether a digital asset is considered a security or not.

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