Their Reasons:
Bloink: Congress must absolutely act to impose more strict regulations on cryptocurrency investments, and in the wake of the FTX collapse, there's no time like the present.
Cryptocurrency investments are even more risky than any traditional investment class, as we've seen from recent volatility. That justifies an even more stringent regulation regime, as we seek to protect ordinary Americans from sophisticated investments that they might not entirely understand.
Byrnes: Ordinary Americans should be given the opportunity to participate in these types of investments alongside the wealthy. Stricter regulations will inevitably make it more difficult for the average American to participate in cryptocurrency investing. Of course, transparency and honesty is important as with any other type of investment. But that doesn't mean that we should impose a strict regulatory regime that would discourage investment in cryptocurrency.
Bloink: Congress and federal regulators have been arguing for years about who has the authorization to properly regulate cryptocurrency investment exchanges. The time has come to clarify whether it is the SEC, CFTC or some other regulatory body that should be authorized to regulate cryptocurrency investments.
Byrnes: Congress has enough on its plate right now. We shouldn't rush into imposing new regulations without significant debate and thought about what that comprehensive regulatory regime should look like. When we do obtain a clearer picture, it should aim to allow full participation in cryptocurrency investment opportunities among all Americans.
Bloink: We aren't necessarily trying to lock ordinary Americans out of the cryptocurrency investment market. What we're trying to do is impose protections designed to prevent unsophisticated investors from becoming entangled in potential schemes that put their hard-earned dollars at risk. The reality is and always has been true that wealthy and sophisticated investors are better prepared to weather these types of storms financially. It's up to Congress to take steps to protect ordinary taxpayers from potential financial ruin through no fault of their own.
Byrnes: I worry that the cryptocurrency regulatory regime being envisioned will take shape based on the current SEC regulatory regimes that we have in place. Often, the investment rules serve to prohibit ordinary Americans from participating in valuable investments based solely on their net worth. Cryptocurrency is a unique investment type and the same old regulatory schemes aren't necessarily going to be the best options in these new markets.
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