The largest US business group, the US Chamber of Commerce, is making a call for proper regulation of cryptocurrencies. This includes any related activities including Initial Coin Offerings (ICOs). This call came in the Chamber’s report entitled, “FinTech Innovation Initiative” released last week. The Chamber pointed out that the call became necessary as more and more cryptocurrencies are subject under the regulator’s scrutiny.
Tasking The SEC
While making a case for blockchain-based products, the Chamber urged the US Securities and Exchange Commission (SEC) to explore creative ways of studying ever-changing ICOs in order to make the most out of the tool for helping startups raise capitals while shielding investors from crooks cashing in on the business model. Well, the Chamber has a task for the Commodity Futures Trading Commission (CFTC), too. The organization calls on the CFTC to study virtual currencies critically. Furthermore, they need to know how they function in the futures and commodities markets.
The report also asked the SEC to expand the scope of its definition of accredited investors to encompass those with educational backgrounds and/or experience that demonstrate expertise in broadening smaller-dollar. It argued that when this is done, overlapping and contradictory rules will reduce, thus allowing the SEC to beam its searchlight on what really matters in the long run, preventing frauds and reducing customer risks.
It was apparent that the business-lobbying group had a lot of tasks for many regulators. It also tasked the Consumer Financial Protection Bureau (CFPB) to adopt an advisory role while dealing with issuers. This would be in order to promote regulatory certainty they need to succeed in business.
Highlighting The Importance Of Cryptocurrency
In the document released last Wednesday, the organization opined that the innovative development of cryptocurrencies and its allied products is one of the eight Financial Technology Principles geared toward bridging the widening chasm between cutting-edge technology and Washington, DC. The body also laid emphasis on guiding key industry stakeholders during token sales. In turn, this will introduce more marketplace predictability and certainty.
On How The SEC And CFTC Should Collaboratively Regulate Cryptocurrencies
The organization called on the two regulators to take the necessary steps to update its laws in order to properly support dynamic technological innovations instead of impeding them. The report added that time is of the essence. Consequently, regulatory laws must not become a barrier for modern-technological innovations. The Chamber concluded by saying it hopes to work with the regulators as tokens grow and more regulations receive clarification.