Republican Senator Pat Toomey has grilled SEC <a href="https://www.cryptoknowmics.com/news/sec-chair-gary-gensler-wrote-to-sen-elizabeth-warren-regarding-the-need-for-increased-regulatory-authority-over-crypto/">Chairman</a> Gary Gensler for failing to provide cryptocurrency regulatory clarity in the United States and demanded the factors the agency used to determine cryptocurrencies as securities.
<h2><strong>Senator Pat Toomey Wants Clarity on Cryptocurrency Regulation</strong></h2>
In a recent <a href="https://twitter.com/SquawkCNBC/status/1438114629616558082" target="_blank" rel="nofollow noopener">interview</a> with CNBC’s Squawk Box, Senator Pat Toomey argued that the Securities and Exchange Commission (SEC) has not provided clearer guidelines as to when a cryptocurrency is considered as a security and subjected under the agency’s oversight.

Senator Toomey also remains concerned about SEC Chairman Gary Gensler’s definition of stablecoins as securities. Per Toomey, stablecoins cannot be classified as securities as it doesn’t meet the legal identification on what a security is.
<blockquote><em>"To me a stablecoin doesn't meet the second prong of the Howey Test, that there has to be an expectation of profits from the investment. If it doesn't meet the Howey Test, it looks to me like it's not a security. Now maybe you've got a good argument for why some are and some aren't, but...I think we need to have clarity on this.”</em></blockquote>
Toomey highlighted that the crypto industry has inevitable technological and innovative potential that could transform the finance markets. He assured that he is not against cryptocurrency regulation but that he just wants transparency and objectivity about the regulation of the cryptocurrency industry.

<em> “I don’t happen to have a view on the value of a given token. But I do have a view that the value of the underlying technology is enormous. It’s going to transform finance, it’s going to do wonderful things for consumers. I don’t want us to stifle the innovation.”</em>
<h2><strong>SEC's War With the Crypto Industry</strong></h2>
The U.S. SEC has been in a legal war with Ripple Labs since December 2020, claiming that <a href="https://www.cryptoknowmics.com/news/sec-admits-failure-in-informing-xrp-is-a-security-until-lawsuit/">XRP</a> is an unregistered security. In 2020, the regulatory agency sued Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen for trading the digital asset.

Recently, the agency also threatened to <a href="https://www.cryptoknowmics.com/news/sec-wants-to-sue-coinbase-over-its-crypto-lending-product/">sue</a> Coinbase crypto exchange for its intention to launch a lending service to let customers earn yields on their crypto.

Senator Pat Toomey Demands Clarity on U.S. Cryptocurrency Legislation

Republican Senator Pat Toomey has grilled SEC Chairman Gary Gensler failing to provide cryptocurrency regulatory clarity in the United States.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Senator Pat Toomey Demands Clarity on U.S. Cryptocurrency Legislation

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