Japanese authorities, having made their skepticism about matters cryptocurrent already abundantly clear, have gone a step further, suggesting that perhaps those who deal in fake currencies should be subject to the same rules as those who deal in real ones. The U.S. seemed to be moving in the same direction, at least in so far as the radical idea that those who dip in those waters should pay taxes, but, well, you know how the sausage gets made.
The update, filed by Sens. Ron Wyden, D-Ore.; Pat Toomey, R-Pa.; and Cynthia Lummis, R-Wyo. would specifically ensure the term “broker” excludes validators, hardware and software makers and protocol developers.
If included in the final bill, the amendment would be a win for the crypto industry, whose advocates have said was at risk of losing innovators and investors interested in doing crypto business in the U.S. The original language could also force some companies to shut down if they can’t comply or move offshore, these advocates said.
Calling the asset class rife with “fraud, scams and abuse,” [SEC Chairman Gary] Gensler signaled the SEC is likely to become more active in policing crypto trading and lending platforms, as well as so-called stablecoins.
“We just don’t have enough investor protection in crypto. Frankly, at this time, it’s more like the Wild West,” Mr. Gensler said in prepared remarks to the Aspen Security Forum. “We have taken and will continue to take our authorities as far as they go….”
“If this innovation has any chance of surviving into the, you know, late 2020s and 2030s, it can’t stay astride of the public policy,” said Mr. Gensler, a veteran Democratic regulator who taught a course on cryptocurrency at the Massachusetts Institute of Technology…. “The world of crypto finance now has platforms where people can trade tokens and other venues where people can lend tokens,” Mr. Gensler said. He said he believes these platforms can be subject to securities laws and may also be subject to commodities and banking laws.
Crypto ‘Wild West’ Needs Stronger Investor Protection, SEC Chief Says [WSJ]
Senators file crypto broker amendment to infrastructure bill after industry backlash [CNBC]
Japan Sees Cryptocurrency Dealers as Part of Anti-Money Laundering Plan, Top Financial Regulator Says [WSJ]
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