At a 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 crypto-currency industry, and there is no need to create a new department. This is reported by Forbes.
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 Commodity Futures Trading Commission (CFTC) and before the Federal Trade Commission, and before the Federal Trade Commission and the Financial Crimes Enforcement Network (FinCEN). In addition, the company also must 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 environment calls to mind the parable of the blind mice and the elephant - each agency looks at tokens from its own narrow perspective:
- the SEC says these assets, particularly ICO’s, are probably securities;
- the CFTC says tokens are commodities, unless they are securities;
- the IRS says they are property;
- FinCEN says tokens are money; and
- other agencies see tokens through their own lens.
Chief Lawyer, Coinbase
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 licence. The list of available crypto-currencies is limited, since there is a risk that the Khovi test can assign the status of securities to other tokens.
Congressman from the Democratic Party of California Brad Sherman in response to the demands of a representative of Coinbase said that crypto-currencies can not be securities or goods, because it is fraud.