Should the SEC have Federal Jurisdiction Over Cryptocurrencies? Congressman Aims to Sidestep Securities Law
There are those who are arguing that the federal government – particularly the Securities and Exchange Commission – should not have jurisdiction over the cryptocurrency and ICO industry. One specific individual heading the argument is Ohio Representative Warren Davidson, who is a republican and is opposed to federal oversight.
In an effort to prompt the discussion on the matter, Davison invited several cryptocurrencies companies to Washington to discuss the issues of mitigating federal control. Though the discussion may be productive, acting on the issue is an entirely different matter.
On the day of the meeting, Davidson’s office released a statement that summarized the congressman’s position concerning regulation. According to the statement, he supports a “light touch” form of regulation. As a result, he is looking to introduce a bill that will do just that.
The bill will remove ICOs from SEC oversight by defining them as products, and not securities. Such a definition will enable them to bypass regulations that have been bogging them down. The release further stated,
“A spokesman for Davidson confirmed that the Ohio Republican plan to introduce a bill that would allow ICOs to sidestep securities law, including at the state level, and eliminate the SEC’s jurisdiction over the industry by treating currencies as products, rather than securities.”
Davidson did not mention any other congressman or women who were on board with the legislation, neither from his party nor the democrats. As for the democrats, they seem to be more wary about such legislation, which will make moving forward difficult.