US Congressman Says Majority of Tokens Are “Money or Commodity”
Congressman Tom Emmer recently described the approach of the Congressional Blockchain Caucus in an interview. They are basically a group of Republicans and Democrats who aim to formulate policies regarding crypto, NFTs, DeFi and games by understanding the implications of blockchain technology.
SEC chairman Gensler said last month that the regulator needed more power to regulate the crypto market, which Emmer expressed disapproval of.
This time around, the SEC chairman said a crypto ban is “at the discretion of Congress.” In response to the same, Emmer argued that Gensler “thinks almost all tokens are safe,” adding that he “categorically disagrees” with the same. He said,
“I think the community wouldn’t agree. Most of us would say that the vast majority of tokens are either a currency or a commodity. “
He explained that what Gensler is doing is “intentional” and not “ignorant”, with the aim of “developing its regulatory jurisdiction over this industry”. Gensler has said time and again that some tokens are securities. He had previously stated,
“It doesn’t matter whether it’s a share token, a stable value token backed by securities…[they] must operate within the framework of our securities regime.
In the interview, Emmer raised objections to Gensler’s use of the word “coins of stable value” for stable coins. He argued that Gensler attempted to make them synonymous with “stable value funds” that fall under the jurisdiction of the SEC.
In addition, it should be noted that stable value funds are a portfolio of fixed income “securities”. Against this background, Emmer speculated that the SEC was trying to take control “of this incredibly fast growing and very lucrative industry.”
“I think it’s a challenge for the central currency… I don’t think we should emulate the Chinese Communist Party. “
This opinion contrasts with that of the former president of the Federal Reserve Bank of Boston, Eric Rosengren. He had recently said that he did not view the US central bank’s digital currency as a stable coin. But instead, as a retail payment or as a cash substitute.
Commenting further on the regulations, Emmer said Gensler and the SEC are creating “regulation that doesn’t exist.” Meanwhile, he said several bills were on hold, but were blocked by the Financial Services Committee.
The bills he has declared include the Securities Clarity Act to specify when a token can be considered a security by the SEC. Apart from that, another Safe Harbor for Taxpayers with Forked Assets Act bill has been introduced for tax guidance on “forked assets”.
Emmer said the Blockchain Regulatory Certainty Act has also been reintroduced to simplify licensing under state and federal laws. Arguing against the SEC’s financial stability stance, Emmer agreed that crypto would pose a challenge to the existing banking system. But, he said,
“I think a free market, when it’s really free, disrupts growth.”