Cryptocurrencies Don't Belong Under SEC's Authority: Rep Soto
*By Tanaya Macheel*
Cryptocurrencies and digital assets are ideally left to the jurisdiction of the U.S. Commodity Futures Trading Commission, rather than the Securities and Exchange Commission, according to Congressman Darren Soto (D-Fla.).
"Securities laws can be very intense and hurt the market unless it’s truly a security,” Soto told Cheddar Thursday. “Overall, we hope to establish jurisdiction and classifications so we can bring confidence and clarity into the market."
Soto introduced two bills in December with Rep. Warren Davidson (R-Ohio). One, "The Virtual Currency Consumer Protection Act of 2018," directs the CFTC to research price manipulation, suggests regulatory changes, and establishes when a crypto asset qualifies as a security. The other, "The U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018," seeks to ensure the U.S. stays competitive in the global industry by mandating research and issuing policy recommendations to better accommodate the market.
How exactly to classify cryptocurrencies has been a hot, complex topic in the United States, as various regulatory agencies have different standards.
For example, the IRS views virtual currencies as property, for the purposes of federal taxes. The SEC views them as currencies – but considers initial coin offering, or ICO, tokens to be securities.
The crypto industry spends significant time exploring when or how a digital asset is a security, to what to extent and how existing SEC laws apply to it, or should. But many forget the SEC doesn’t create the laws. Now, Congress appears ready to at least attempt to change the laws to ensure consumers stay safe and the U.S. doesn’t fall behind other countries that have tried to establish themselves as leaders in the crypto industry ー such as Japan, or even countries like Malta and Barbados.
“There’ll be a role for the CFTC and FTC to play and we’ll be saving the SEC for true securities, knowing predominantly that these are commodities and currency transactions,” Soto said.
"Those are agencies with a lighter touch and we have grown consensus among the industry that they’d be appropriate for the majority of these types of cryptocurrency transactions and the nature of these assets."
Though it’s difficult to determine when to expect responses from the CFTC, Soto said he wants to at least "establish a rudimentary structure to instill confidence and clarity, so we can continue to dominate in this area for the future of our economy.”
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
