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Pro-Crypto Congressman Tom Emmer Slams FSOC, Proposes Radical Reform: Here's Why

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Fri, 05/13/2022 - 10:22
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Vladislav Sopov
"The future of crypto will be decided by the American people," Sen. Emmer (R-MN) stressed
Pro-Crypto Congressman Tom Emmer Slams FSOC, Proposes Radical Reform: Here's Why
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Congressman Tom Emmer, one of the most renowned advocates of building clear and appropriate regulatory designs for blockchain and cryptocurrencies in the U.S., slammed the Financial Stability Oversight Council for losing the independence "of partisan pressure."

Sen. Emmer claims FSOC fails to represent Americans when it comes to crypto, needs major reform

Mr. Emmer has taken to Twitter to stress that the U.S. Financial Stability Oversight Council, or FSOC, chaired by anti-crypto secretary Janet Yellen, should be brought under congressional oversight.

According to him, debates about cryptocurrency regulation reveal a lack of transparency in the FSOC agenda. Also, he claims that FSOC might be used by politicians to circumvent legitimate procedures in this discussion.

The President's Working Group on Financial Markets (PWG) is pushing Congress to adopt regulations on stablecoins, while Congress has not found a consensus yet.

This, in turn, might prevent American voters from having a say in new crypto and stablecoin regulations. Sen. Emmer highlights that a "bureaucratic regulatory posture" is the latest thing Congress needs in order to establish a modern regulatory framework for digital assets:

The future of crypto will be decided by the American people, not bureaucrats.

More regulation for crypto after Terra collapse?

Sen. Emmer introduced the FSOC Reform Act in order to bring FSOC under congressional oversight. This will advance the transparency of its activity.

As covered by U.Today previously, amid the collapse of the LUNA-UST financial system that affected the entire segment of cryptocurrencies, Secretary Janet Yellen called for the necessity of stablecoin regulation.

Related
Janet Yellen Says UST's Collapse Illustrates Risks to Financial Stability

According to her, unregulated stablecoins pose threats to financial stability.

By press time, UST is changing hands at $0.1195, completely depegged from its underlying asset.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)