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US can regulate cryptocurrencies with out new regulation, assume tank says

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U.S. regulators can largely use current legal guidelines to convey digital property corresponding to cryptocurrencies underneath their supervision with out new congressional laws, certainly one of Washington’s most influential liberal assume tanks mentioned on Tuesday.

Businesses together with the Securities and Trade Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC) may use the report from the Heart for American Progress (CAP) to tell their selections on govern cryptocurrencies.

Regulators haven’t but decided how greatest to manage cryptocurrencies, specifically so-called “stablecoins” whose creators say they’ve pegged their values to the greenback and different fiat currencies. The U.S. Treasury Division kicked the problem to Congress in a report final 12 months.

Progressives, apprehensive about systemic danger and investor safety, need regulators to take a more durable stance on the problem.

The assume tank mentioned it could be useful for Congress to handle gaps inside the present regulatory framework — corresponding to creating guidelines for crypto commodities. However it warned {that a} new and distinct regulatory construction for crypto may inadvertently weaken supervision and create regulatory arbitrage.

“For crypto securities, we have already got an current construction in place, and that construction must be enforced. We need not recreate the wheel,” mentioned Todd Phillips, director of economic regulation and company governance at CAP, who co-authored the paper with Alexandra Thornton, its senior director of tax coverage.

CAP maps out numerous measures companies can take inside their present mandates. For instance, the SEC may regulate crypto pockets suppliers as clearing companies, or the CFTC may require the disclosure of the property that again stablecoins.

The report additionally urged that the banking regulators may enable banks to situation their very own stablecoins with out congressional authorization, as long as they’d be backed by greenback reserves.

(Reporting by Hannah Lang in Washington; Enhancing by Michelle Value and David Gregorio)


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