US Senator Pat Toomey Differentiated illegal activities of cryptocurrency exchange FTX “from perfectly acceptable, innovative cryptocurrencies.” Highlighting That “the FTX collapse is not an indictment against cryptocurrency,” He pointed out that “cryptocurrency can’t be stifled” And that “technology would simply shift to other countries” If Congress Tried.
Parting Illegal activities can be prevented by using ‘perfectly permissible and innovative cryptocurrencies.
US Senator Pat Toomey (R-PA), explained in his introductory speech at the Senate Banking Committee Hearing on Wednesday The collapse of cryptocurrency exchange FTX does not mean that cryptocurrencies are under attack.
“There were unauthorized loans of client funds to an affiliated entity, and there were fraudulent promises to investors and customers concerning FTX’s operations. These are outrageous and totally unacceptable”The senator was quoted as stressing:
Let me emphasize an even greater issue: The behavior that occurred here isn’t limited to the underlying asset. What It appears that there was a complete failure in the management and control of these funds.
“In our FTX discussion today, I hope we can distinguish potentially illegal stocks from innovative and perfectly permissible cryptocurrencies,” He spoke to the Senate committee.
Noting You can use cryptocurrencies. “are actually software,” Senator Toomey explained: “What we all need to understand here is one basic truth: the code did not commit any crime. FTX and cryptocurrencies are not the same. FTX was opaque, centralized, and deceptive. Cryptocurrencies are open source, decentralized, and transparent.”
Should FTX Fallout You can’t just forbid or restrict them. “halting” crypto?
The Pennsylvania Senator responded to suggestions that cryptocurrencies be banned after the FTX crash.
“To those who think that this episode warrants the prohibition of cryptocurrencies, I ask you to consider a few examples,” He began. “The The misuse of mortgage-related products was a major factor in the 2008 financial crisis. Did Do we ban mortgages? Of course, no. A former CEO of a commodity brokerage firm New Jersey Senator John Corzine The company collapsed when customer funds, including US Dollars, were stolen to cover shortfalls in trading losses. No One proposed that the US dollar was the problem and that it should be banned.” Senator Toomey underlined: “With FTX, the difficulty is not the instruments that were used. The problem was the misuse of customer funds, mismanagement and likely illegal behavior.”
The legislator continued:
Some My colleagues have suggested we should stop using crypto before we tackle it. This This is totally absurd, if not impossible. Unless Cryptocurrency can’t be stifled if authoritarian or oppressive policies have been put in place. If We attempted but the technology would simply move away.
“Are we going to decide to suspend our Constitution to prevent cryptocurrencies? This is precisely the kind of attitude that has brought this venture to the dark and less regulated parts of the world,” He went on to say that he was also convinced.
Should Congress Do you not want to regulate cryptocurrencies?
FurthermoreAccording to the legislator, “Others have suggested that we refrain from addressing cryptocurrency at all, so as not to legitimize its use. This is not only wrong, it is irresponsible.”
The senator outlined: “People can also be hugely empowered when they use cryptocurrencies. They can protect against inflation when governments irresponsibly manage their own currencies. They can offer useful services without the need for a middleman or corporation. And they can give people the freedom to transact in private.”
Toomey Also tweeted on Wednesday:
The The collapse of FTX does not mean that cryptocurrencies are under attack. It It is an indictment of those who misuse customer funds.
“As I have been saying for months, Congress must provide regulatory clarity so that business will flow to prudent, sensible, and well-regulated American crypto exchanges,” He concluded.
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