House Republican, SEC Commissioner Partner on Token Sales Policy

Gensler does not intend to follow China in banning cryptocurrencies.

share

key takeaways

  • The Republican head of the House Financial Services Committee is asking for clarification from Gensler on Crypto policy
  • The proposed bill echos sentiments from Pierce’s safe harbor policy

Representative Patrick McHenry (R., NC), the top Republican on the House Financial Services Committee proposed a bill Tuesday that would allow for startups in the cryptocurrency space to fundraise through token sales, bypassing current securities laws. 

The Clarity for Digital Tokens Act of 2021 looks to provide a “safe harbor for startup digital asset projects, while maintaining important investor protections,” according to a press release from McHenry’s office. 

The bill supports US Securities and Exchange Commission (SEC) Commissioner Hester Pierce’s Token Safe Harbor Proposal, originally introduced in February 2020 and re-introduced with updates in April 2021. 

“The safe harbor seeks to provide network developers with a three-year grace period within which, under certain conditions, they can facilitate participation in and the development of a functional or decentralized network, exempted from the registration provisions of the federal securities laws,” Pierce’s statement read. 

McHenry’s bill, if passed, would amend the Securities Act of 1933 and allow crypto development teams to sell tokens without registering them as securities for a period of three years. 

“The U.S. should be a global leader, not a global follower, when it comes to digital assets,” said McHenry in the statement. “Unfortunately, our current regulatory framework threatens to push this technology—and the jobs created by this rapidly growing industry—overseas.” 

The news comes as SEC Chair Gary Gensler, who has previously expressed concern over cryptocurrencies and their role in the broader financial landscape, said that the US will not be banning cryptocurrencies. 

During a House hearing Tuesday, Gensler was asked if he had any intention of following China’s lead when it came to digital asset regulation. 

“Our approach is really quite different,” Gensler said. 

The SEC head also pointed out that any ban would have to come from congress. 

McHenry also released a letter to Gensler on Tuesday, requesting that the SEC clarify the digital asset policy agenda. 

“You have made a series of concerning and apparently self-contradicting public statements regarding crypto assets and other innovative technologies,” the Congressman wrote in the letter. “I request that you clarify these comments promptly to avoid further confusion in the marketplace.” 

Gensler has not yet publicly addressed the letter. 

Tags

    Upcoming Events

    Hilton Metropole | 225 Edgware Rd, London

    Mon - Wed, March 18 - 20, 2024

    Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

    HYATT REGENCY SALT LAKE CITY

    TUES, OCT. 8, 2024

    Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

    Salt Lake City, UT

    WED - FRI, OCTOBER 9 - 11, 2024

    Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

    recent research

    Research report cover graphics (1).jpg

    Research

    Wormhole is a suite of open-source, permissionless protocols used to move assets and queries across blockchains.  Despite being a common misconception, Wormhole is not just a token bridge. Nevertheless, protocols can build token bridges on top of Wormhole by leveraging the cross-chain messaging provided.

    article-image

    Ether is a commodity just up until the point it is not, or, ether is not a commodity just up until the point it is — whichever you prefer

    article-image

    The bull-market conference was filled with good feelings but little clarity on where the crypto industry is headed next

    article-image

    The Friday ruling was issued as a default judgment because Sameer Ramani “appears to have fled the country”

    article-image

    Bitcoin’s previous record high against the Euro was set in September 2021

    article-image

    As bitcoin ETFs grow larger and more liquid, due diligence teams at wirehouses and other investment firms are more likely to clear them, Bitwise researcher says

    article-image

    Sponsored

    The TRON DAO team attended ETH Denver, one of the leading events in the blockchain space