US Senator Soliciting Proposals to Ensure Federal Law Supports Cryptocurrency

U.S. Senator Pat Toomey is soliciting ideas and proposals on cryptocurrency regulation. He explained that he “intends to use the responses in forming legislation that clarifies ambiguity around how existing laws, especially in the tax and securities realms, may apply to cryptocurrencies.”

US Senator Pat Toomey Seeks Proposals on Crypto Regulation

The U.S. Senate Committee on Banking, Housing, and Urban Affairs announced Thursday that Ranking Member Pat Toomey is requesting “feedback on clarifying laws around cryptocurrency and blockchain technologies.” The committee will collect proposals from Aug. 26 to Sept. 27. All proposals will subsequently be published.

Senator Toomey detailed that he is “soliciting ideas and legislative proposals to ensure federal law supports the development of emerging cryptocurrency and open blockchain network technologies while continuing to protect crypto investors.”

He explained that he “intends to use the responses in forming legislation that clarifies ambiguity around how existing laws, especially in the tax and securities realms, may apply to cryptocurrencies.”

The senator emphasized:

Rather than trying to ignore or suppress cryptocurrency and related technologies, regulators and legislators alike need to recognize that open, public networks are here to stay. Our laws and regulations must adapt to these developments.

Potential topics that the proposals should address include securities implications of cryptocurrencies, payments and money transmission supervision, stablecoins, cryptocurrency exchanges, custody regulation, banking authorities, and decentralized finance (defi).

“Not only might cryptocurrency and blockchain technologies be as revolutionary as the internet, [but] they also have the potential to build wealth and financial independence for individuals who are empowered to engage in financial transactions directly with each other, free from oft-costly middlemen,” Senator Toomey continued, elaborating:

That’s why it’s important Congress gets this right and ensures the United States remains at the forefront of cryptocurrency and fintech innovation.