U.S regulators are responsible for the stifled growth of its cryptocurrency industry at the moment according to ex-congressman, George Nethercutt.
The former Washington D.C Rep revealed this stance and pointed the finger at the U.S Securities Exchanges Commission (SEC) for their decision to apply securities law to cryptocurrencies.
First, Nethercutt compared the efforts of the U.S State Department in defending American innovation and protecting intellectual property to what the U.S SEC is doing back home with cryptocurrencies.
His observation was that the SEC has been “slow to make pronouncements regarding cryptocurrencies,” which is in stark contrast to their international counterparts who brilliantly defended innovative intellectual properties belonging to the U.S.
According to him, this slow regulatory approach has “hampered innovation and left many American businesses in regulatory limbo, particularly with respect to whether or not their tokens are classified as securities.”
Until now, the U.S SEC continue to regard all tokens issued by ICOs as securities and impose fines on projects that launch out, without registering with the agency. So far, this approach has not yielded good fruit since one of the agencies that applied for SEC securities approval since 2017 is yet to get feedback from the regulators.
It is on the basis of such delays and fines that ex-Rep George Nethercutt called on the SEC to exclude cryptocurrencies from their securities laws and instead introduce a framework for the new invention.
“From a legal perspective, experts have concluded that securities regulations simply do not apply to cryptocurrencies. It’s time policymakers share that approach, allowing innovation to continue to flourish.”
The thoughts of Nethercutt mirrors that of U.S Reps Warren Davidson and Darren Soto who in December introduced a new bill called the “Token Taxonomy Act.” As we reported then, the objective of the proposal is to exclude new cryptocurrencies issued by ICOs, from the SEC securities laws.
There are also similar efforts in the U.S State of Colorado where a new bill called the “Colorado Digital Token Act” was introduced to the Senate earlier this month with the same objective.
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