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US Congressman Darren Soto said that most cryptocurrencies should not be regulated by the country's regulator. Soto made his comments in an interview with the Cheddar financial news channel on January 10th.
According to Soto, the crypt should be overseen by the Commodities and Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC) – rather than classified as securities under the Securities and Exchange Commission (SEC) commission.
Soto, a Democrat, is a member of the US House of Representatives for the 9th District of Florida and has led a bipartisan effort together with MEP Ted Budd's winter quest to promote a solid and crypto-friendly regulatory environment in the country .
Supporting the need to establish the jurisdiction of the agencies with greater clarity and to create fine-grained classifications for cryptocurrencies, the Congressman argued that the application of federal securities laws "can be very intense and damage the market to unless it is really a security ".
He then outlined:
"We will save the SEC for real securities, knowing primarily that they are commodities and currency transactions [CFTC and FTC] they are agencies with a lighter touch and we have grown in consensus among the industry that would be appropriate for most of these types of cryptocurrency transactions and the nature of these businesses. "
Soto has made its case against heavy regulation, in order to maintain the global competitiveness of the United States – recognizing proactive efforts to promote the crypto industry in countries such as Malta and Barbados. Soto noted:
"Sometimes we assumed that the US dollar is the foundation of the world economy, and how it creates stability and advantage […] While cryptocurrency becomes more used, that advantage could go away … [we] we must be sure that we are aggressive and a fertile place for cryptocurrency transactions and that technology companies are here ".
Since the United States does not currently have a single regulatory body overseeing encryption, regulators have long debated whether it is more appropriate to align virtual currencies with commodities or securities.
The CFTC has determined that some of the main cryptocurrencies are raw materials, in particular Bitcoin (BTC).
Meanwhile, several major US regulators have argued that most of the tokens sold through initial coin offerings (ICOs) are to be considered securities, bringing them under the jurisdiction of the SEC jurisdiction. According to the 70-year Howey test, security involves investing money in a joint venture, where the investor expects profits primarily from other people's efforts.
For its part, the Internal Revenue Service advised that, for federal tax purposes, it decided to treat cryptocurrencies as property.
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