Fmr. U.S. Congressman: “Washington Must Avoid Half-measures on Legislating Crypto”

Harold Ford Jr. is a financial managing director, political pundit, and former U.S. congressman from Tennessee’s 9th congressional district. Recently, he’s been speaking out on the government’s slow response to cryptocurrency sector, arguing that it will harm innovation in the long-term.

Cryptocurrencies are slowly coming up on congressional agendas this year and one former congressman is speaking out about the government’s lack of activity in addressing this topic.

During the July meeting convened by the House Financial Services Committee, Harold Ford Jr. penned a piece discussing how it worrisome that Congress was painting a ‘broad brush’ on the Libra question. For the average cryptocurrency investor, it’s something we know too well: politicians who go overboard in their opposition towards cryptocurrencies.

Despite bills proposed and some lobbying work being done behind-the-scene, we’re still not closer to a regulatory framework for cryptocurrencies. As Ford Jr. writes on CNBC, “the agency has tried to unilaterally apply securities law to this new innovation in fits and starts, making investment more uncertain and development more expensive in the United States.” He goes on to argue that the SEC’s inaction could up damaging the country’s future.

…The SEC’s document carries the distinct possibility of stifling innovation. American companies have been working diligently for decades to develop their offerings in full compliance with a constantly evolving set of rules. This non-binding guidance only adds to the confusion, as it could indicate how the SEC might be thinking about regulating without overtly stating the rules of the road.

The SEC now has opportunity to lead on regulation, Ford Jr. writes. Commissioner Hester Peirce recently even said as much, arguing that “the U.S. will fall behind other countries in attracting crypto-related businesses unless we are more forward-leaning in establishing a regulatory regime with discernible parameters.” 

So, for Ford Jr., the time is now: “Together, U.S. lawmakers and regulators can get this right.”

Do you agree with Ford Jr. that the SEC can still rectify its mistakes thus far? Let us know your thoughts in the comments down below.

Image courtesy of The Root.