Senator Toomey demands “transparency and objectivity” in Gensler’s crypto vision

In a recent interview with Squawk Box, Senator Pat Toomey has surprisingly changed his stance and is now supporting the crypto community. Senator Toomey, who was formerly in news for voting in favor of the controversial crypto amendment in the infrastructure bill, is now arguing against Chairman Gensler’s unclear regulatory vision of the crypto industry.

"I'm not in the camp that thinks that there should never be any kind of regulation over any kind of #cryptocurrency … but I do think there needs to be transparency and objectivity about what we're doing here," says @SenToomey on regulating #crypto #bitcoin pic.twitter.com/VhoCR0XLPd

— Squawk Box (@SquawkCNBC) September 15, 2021

Sen Toomey argues stablecoins are not securities

He faults the SEC’s inability to provide a clear framework on what kind of cryptocurrencies the commission considers to be securities. Senator Toomey said that he is concerned about Gensler’s argument on stablecoins being securities. He asserted that stablecoins do not meet the legal criteria to be deemed as securities in his opinion. However, he clarifies that the community is not scouting for a war against the regulators, in fact, they only require a certain policy structure to determine the characteristics of a security, which the SEC and Chairman Gensler have failed to facilitate, yet.

“I’m not in the camp that thinks that there should never be any kind of regulation over any kind of cryptocurrency … but I do think there needs to be transparency and objectivity about what we’re doing here,” said Sen Toomey on regulating cryptocurrencies.

Sen Toomey suggests tip-toeing in matters of crypto regulation

Senator Toomey also admits that there are products in the market that fit the criteria of securities, mutual funds, or even money market accounts. He agrees that a regulatory regime should be laid out for these products. However, Toomey also warns that the government needs to proceed extremely cautiously in the issue of cryptocurrencies.

"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," @SenToomey. pic.twitter.com/Kct5sPuLAq

— Squawk Box (@SquawkCNBC) September 15, 2021

Toomey highlights that the decentralized sphere has inevitable technological and innovative potential that could transform the finance markets. Nevertheless, Toomey emphasizes that in lieu of regulating the crypto industry, the government should beware of stifling innovation.

“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,”, he added.