US Senator Pat Toomey announces References to illegal activities by FTX should be separated from “wholly legal and innovative cryptocurrencies”. He stressed that “the collapse of FTX is not an indictment of cryptocurrencies,” saying that “cryptocurrencies cannot be stopped” and “the technology will simply move offshore if Congress tries.”
Separation of Illegal Activities from “Completely Legal and Innovative Cryptocurrencies”
US Senator Pat Toomey (Republican-PA) said Wednesday before the Senate Banking Committee In its opening statement at its hearing, the collapse of cryptocurrency exchange FTX does not accuse cryptocurrencies.
“There was an unauthorized loan of customer assets to affiliates and fraudulent promises to investors and customers regarding the operation of FTX.
where: I would like to highlight the bigger issue, the fraud that has occurred here is not specific to the underlying assets, what seems to have happened here is a complete breakdown in the handling of these assets
“In today’s FTX debate, I hope we can separate potentially illegal activity from a completely legal and innovative cryptocurrency,” he told the Senate committee. Told.
Senator Toomey, who said cryptocurrencies are “really software,” explained: FTX and cryptocurrencies are not the same thing. FTX was opaque, centralized, and dishonest. Cryptocurrencies are open source, decentralized, and transparent.
Should FTX Fallout justify a ban or “pause” of cryptocurrencies?
I started working on a proposal that it should be banned.
“Those who think this episode justifies the banning of cryptocurrencies should consider some examples,” he began. “The 2008 financial crisis involved misuse of mortgage-related products. Did you decide to ban mortgages? A leading commodity brokerage firm went bankrupt after client funds (including US dollars) were diverted to make up the shortfall of the firm’s trading losses.The problem is the US dollar, and who says it should be banned? Nor did it suggest.” Senator Toomey emphasized: The problem was misuse of customer funds, gross mismanagement and possibly illegal activity.
MPs continued:
Some of my colleagues have suggested suspending cryptocurrencies before addressing them. This is very irrelevant, let alone impossible. Cryptocurrencies cannot be stopped without enacting strict and authoritarian policies. Even if you try, the technology simply moves offshore.
“Are you going to decide to suspend the constitution to stop cryptocurrencies? he further remarked.
Should Congress refrain from regulating cryptocurrencies?
Further, lawmakers said: This is not only irrelevant, it is irresponsible.
Senators elaborated: When governments manage their currencies irresponsibly, they can protect against inflation. It can also allow individuals to maintain their freedom to trade privately.
Toomey also tweeted on Wednesday:
FTX collapse is not a crypto prosecution. This is a prosecution of those who misused customer assets.
“As I’ve been saying for months, Congress needs regulation clarity, and businesses need to be careful, prudent, and well-regulated America’s virtual world.” It flows to currency exchanges,” he added.
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