USA SEC’s suggestion to cryptocurrency and Blockchain was by Criticizes Libertarian Think Tank

John Berlau, a leading member of Liberty Research Institute of the Competitive Enterprise Institute, has criticized the US Securities and Exchange Commission (SEC) in regulating the currency cryptocurrency. Berlin presented its comments in a report published on April 11th.

In a report titled "Cryptocurrency and Unlimited Power of SEC: Why Speculative Consumer Goods are not" Value," Berlus has argued that blockchain technology and cryptocurrency are currencies of transformational innovation, whose potential is difficult by" severe regulation."


Berlusah said that "among federal financial regulators, no one is threatened by crypts and related block-technology technologies than the Securities Commission." He said government action against technology prevents entrepreneurs from experimenting with new approaches and applications.

Berlau further argued that reviewing DIP could jeopardize the functionality of blockchain technology if the Cryptocurrency agency is viewed as "security." He said that the regulatory approach of SEC Cryptocurrency could harm retail investors:

 "Considering the Cryptocurrency as" Security ", it could put it out of reach of middle class investors due to the same bureaucracy, such as the DIP regulations and financial regulation laws such as the Sarbanes-Oxley 2002 and Dodd-Frank Act 2010 - which made small venturers unable to access the capital of companies in the growth phase. "

The report is further criticized by the Howey test, which uses the DIP and the Supreme Court to determine whether the transactions qualify as "investment contracts." Berlin said the test gave the agency "the power to regulate many cryptocurrencies as securities," allowing it to take more drastic measures against the cryptocurrency than other investments.

Earlier in April, the DIP issued guidelines under the "Investment Contract Analysis Framework" to help market participants determine whether digital assets were considered as investment contracts and so on.

Commenting on this document, Berlusah said: "It seems to extend Howey's test even further and significantly expands products that can be considered values."

 Earlier this week, US lawmakers reintroduced the Token Taxonomy Act in the House of Representatives. If law becomes law, digital currencies will be excluded from federal securities laws.


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