Sen. Toomey seeking ideas and proposals for cryptocurrency bill

U.S. Sen. Pat Toomey (R-PA) is soliciting ideas and proposals to ensure federal law supports the development of emerging cryptocurrency and open blockchain network technologies.

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Toomey, ranking member on the U.S. Senate Banking Committee, plans to use the responses to develop legislation that clarifies ambiguity around how existing laws, especially in the tax and securities realms, may apply to cryptocurrencies.

“Rather than trying to ignore or suppress cryptocurrency and related technologies, regulators and legislators alike need to recognize that open, public networks are here to stay. Our laws and regulations must adapt to these developments,” Toomey said. “Not only might cryptocurrency and blockchain technologies be as revolutionary as the internet, they also have the potential to build wealth and financial independence for individuals who are empowered to engage in financial transactions directly with each other, free from oft-costly middlemen. That’s why it’s important Congress gets this right and ensures the United States remains at the forefront of cryptocurrency and fintech innovation.”

The committee will accept proposals from August 26 to September 27. Each proposal should include a brief description of the proposal and how it will encourage the growth of cryptocurrency and blockchain technology in the United States and proposed legislative language. Proposals should address the following topics: securities implications of cryptocurrencies; payments and money transmission supervision; stablecoins; cryptocurrency exchanges; custody regulation; banking authorities; privacy, due process, investor, and consumer protection; decentralized finance (defi); removing existing regulatory ambiguities related to cryptocurrency; and clearly defined goals for appropriate regulations.

“I am hopeful the broad array of legislative proposals I receive will help in crafting thoughtful legislation,” Toomey said.