During the hearing in the US Congress, the chief lawyer of the American company Coinbase, Mike Lempres, said that the federal government has all the necessary powers and mechanisms to regulate the cryptocurrency industry, and there is no need to create a new department. Nevertheless, Lempres noted that the authorities should determine what powers each supervisory authority has over the industry, since Coinbase already reports to the Securities and Exchange Commission (SEC), and to the Commission on Futures Trading (CFTC) and before the Federal Trade Commission, and before the Office for Combating Financial Crimes (FinCEN). In addition, the company must also comply with the requirements of licensing authorities in 38 states.
Each regulator, according to Lempres, must choose a specific direction in the crypto-currency sphere and take it under control.
“Today’s situation is somewhat reminiscent of the parable of the blind and the elephant – each department considers the token exactly under its own angle. The SEC claims that tokens are securities; in CTFC think, tokens are goods in the event that not securities; in the Tax Administration they are considered their property, and in FinCEN it is money, “he stressed, demanding specifics in the regulation of the ICO.
Lempres also explained why only Bitcoin, Litecoin, Ethereum and Bitcoin Cash are traded on GDAX. The reason is that these digital assets are not exactly securities, for which Coinbase does not have a trade. The list of available cryptocurrencies is limited, since there is a risk that the Khovi test can assign the status of securities to other tokens.