US Senator Pat Toomey Separates the illegal activities of cryptocurrency exchange FTX “from perfectly legal, innovative cryptocurrencies.” Emphasizing That “the FTX collapse is not an indictment against cryptocurrency,” He pointed out that “cryptocurrency cannot be stopped” That and more “technology would simply migrate abroad” If Congress Tried.
Distinguishing Illegal acts can be prevented by using ‘legitimate and innovative cryptocurrencies.
US Senator Pat Toomey (R-PA), clarified in his opening address at the Senate Banking Committee Hearing on Wednesday That the failure of cryptocurrency exchange FTX does not mean that cryptocurrencies are under attack.
“There were unauthorized loans of client assets to an affiliated entity, and there were fraudulent promises to investors and clients about FTX’s operations. These are scandalous and totally unacceptable”The senator emphasised:
Let me highlight an even bigger problem here. The behavior that took place here is not restricted to the underlying asset. It appears that there was a complete collapse in the management and control of these assets.
“In our FTX discussion today, I hope we can distinguish potentially illegal stocks from innovative and completely legal cryptocurrencies,” He spoke to the Senate committee.
Noting You can buy cryptocurrencies “are actually software,” Senator Toomey explained: “What we all need to understand here is one simple thing: the code did not commit any crime. FTX and cryptocurrencies are not the same. FTX was opaque, centralized, and dishonest. Cryptocurrencies are open source, decentralized, and transparent.”
Should FTX Collapse Justify banning or “pausing” crypto?
The Pennsylvania Senator addressed suggestions that cryptocurrencies should not be allowed following the FTX crash.
“To those who think that this episode justifies the ban on cryptocurrencies, I ask you to consider several examples,” He began. “In 2008, the financial crisis was caused by mortgage-related product misuse. Did Do we ban mortgages? Of course not. Former employees run a commodity brokerage firm New Jersey Senator John Corzine The firm collapsed when client funds, including US Dollars, were stolen to pay for shortfalls in trading losses. No One person suggested that the US dollar was the problem and that it should be banned.” Senator Toomey emphasised: “With FTX, the problem is not the instruments that were used. The problem was the misuse of client funds, mismanagement and likely illegal behavior.”
The legislator continued:
Some My colleagues suggested we stop using crypto before we tackle it. This This is utterly absurd, if it’s not impossible. Unless If authoritarian and draconian policies are in place, cryptocurrency cannot be stopped. If We tried but the technology would just migrate away.
“Are we going to choose to pause our Constitution to stop cryptocurrencies? This is exactly the kind of mindset that has brought this activity to the dark and less regulated parts of the world,” He also opined.
Should Congress Not want to regulate cryptocurrencies?
FurthermoreThe legislator stated: “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 detailed: “People can also be tremendously empowered when they use cryptocurrencies. They can protect against inflation when governments irresponsibly manage their own currencies. They can provide useful services without the need for a company or middleman. And they can allow people to retain the freedom to transact in private.”
Toomey Also tweeted Wednesday:
The The collapse of FTX does not mean that cryptocurrencies are under attack. It This is an indictment against anyone who misappropriated client assets.
“As I have said for months, Congress must provide regulatory clarity so that business will flow to prudent, sensible, and well-regulated American crypto exchanges,” He concluded.
What How do you view the world? Senator Pat Toomey’s Comments on FTX or crypto? Let Let us know what you think in the comments section.