US Congressman: 'Race to Regulate' Won't Solve Crypto Fraud

Though fraud is undoubtedly an issue in the cryptocurrency ecosystem, U.S. Congressman Patrick McHenry believes lawmakers shouldn't rush to impose new regulations.

During a March hearing on initial coin offerings and cryptocurrencies, California Rep. Brad Sherman memorably dubbed cryptocurrencies a "Crock," while Michigan Rep. Bill Huizenga declared: "This panel, this Congress is not going to sit by idly with a lack of protection for investors."

McHenry said in the interview that such hastiness could stifle the innovative potential of the blockchain industry.

McHenry said he thinks the existing regulatory approach is working, and that it is unlikely that Congress will need to develop entirely new laws for the industry in the future.

"I think we need to take a comprehensive look at the ways this emerging technology already fits within our regulatory structure that exists today before we look at new regulations or new laws that might be needed," McHenry explained.

Regulators like the SEC have already exemplified this with their enforcement actions, he said, noting: "There's a structure there already and an existing law that enables them to do that."

For now, McHenry suggests that Congress should focus on learning about blockchain, cryptocurrencies and their use cases.

"But there's so many new use cases that it's hard to keep tabs on."

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