Senator Pat Toomey of Pennsylvania believes that the United States should take advantage of China’s crackdown on cryptocurrency.
To take advantage of the potential, US regulators must abandon their “regulation-by-enforcement” approach, according to Banking Committee Ranking Member Toomey, who recently pressed SEC Chairman Gary Gensler to provide clear public guidance on existing crypto regulation, including stablecoins.
“China’s authoritarian crackdown on crypto, including Bitcoin, is a big opportunity for the U.S. It’s also a reminder of our huge structural advantage over China,” Toomey said on Twitter.
He argued that “economic liberty leads to faster growth and, ultimately, a higher standard of living for all,” while also pointing out that China’s hostility to economic freedom closes the door to “arguably the most exciting innovation in finance in decades.”
Toomey recently expressed concern about the lack of transparency and objectivity in the current state of crypto regulation in the United States, urging the SEC to establish clear guidelines on which cryptocurrencies it considers securities.
Senators requested “detailed answers” to a list of questions in a recent letter to SEC Chairman Gensler. The questions were submitted to provide both Congress and industry insiders clarity on the current regulation of cryptocurrencies.
Others, including SEC Commissioners Hester Peirce and Elad Roisman, share Toomey’s concerns about the SEC’s lack of regulatory clarity.