US Congress in the search for the middle way of regulating crypto-currency

How to maintain a balance between the need to protect users and the development of innovation?

Reuters tells how US lawmakers are moving to consider new rules for federal supervision of the developing class of assets – crypto-currencies.

The Senate and the House of Representatives are actively studying methods of solving problems related to the risks created by crypto-currencies for investors and the financial system.

The publication writes that even free-trade advocates, Republicans, claim that they need to regulate crypto-currencies if they can really threaten the economy.

Crypto-currency now belongs to the "gray zone" from the legal point of view, which is adhered to by the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Treasury Department, the Federal Reserve and the state authorities.

Probably, the main work on regulation of the Crypto-currency will be carried out by the Securities and Exchange Commission. "The SEC is properly a leader in this matter," said Republican Party spokesman Bill Huizeng, chairman of the subcommittee on financial services and markets, who will hold hearings on this issue in the coming weeks.

He noted that the issue of supervision in the market of crypto-currencies became aggravated in connection with the recent boom-like development of the crypto-currency market. Although many legislators agree on the need for more stringent controls, there is as yet no consensus in Congress on how to proceed.

Senator Democrat Chris Van Hollen, a member of the Senate Banking Committee, explained the complexity of regulating crypto-currency:

"The goal here is to have rules that protect consumers, but do not discourage innovation."

Author: Evgenij Novožilov, Analyst Freedman Club Crypto News

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