Why Senator Pat Toomey Thinks SEC Chair Gary Gensler Is Wrong About Crypto

Pat Toomey, U.S. Senator for Pennsylvania, talks about legislation in the crypto industry, how to determine if something is a security, the future of CBDCs, and much more. 

Show highlights:

• the structural differences between crypto tokens and securities
• why Sen. Toomey is demanding crypto legislation
• why “regulation by enforcement” does not provide clarity
• how to determine if a token is decentralized
• whether proof of stake consensus turns tokens into securities
• Sen. Toomey’s take on the new framework for stablecoin regulation
• whether it is appropriate to ban algorithmic stablecoins
• the importance of making disclosures so that regular users understand the risks of crypto
• how the collapse of Terra and other crypto companies like Voyager and Celsius affected lawmakers’ perception of crypto
• whether the US Treasury made a mistake with the Tornado Cash sanctions
• what the government should take into account in regards to a central bank digital currency (CBDC)
• why he believes the White House reports on crypto are not helpful and whether entrepreneurial talent is migrating to other countries
• the likelihood of any of the crypto bills passing soon

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Sen. Toomey

Previous Coverage of Unchained on regulation:

• Congressman Ro Khanna: How to Get More Democrats into Web3
• The Legal and Regulatory Fallout From Terra’s Collapse: Who Will Pay?
• Why the Crypto Industry Believes SEC Regulation by Enforcement Hurts US Consumers

SEC Views

Gary Gensler’s comments on PoS tokens

Sen. Toomey’s opinion

White House Reports

Stablecoins

• Stablecoin Draft Bill
• Bloomberg article: Senator Pat Toomey Still Sees Chance of Stablecoin Legislation This Year
• Sen. Toomey’s framework for payment stablecoins that he released last spring

Tornado Cash

• Treasury Press release 
• Previous coverage of the Tornado Cash Sanctions on Unchained:

• Is TRM Labs Blocking Addresses From DeFi Protocols? Ari Redbord Says No 
• Tornado Cash Sanctioned. Did the Government Overstep Its Bounds?
• The Chopping Block: Did OFAC Overstep by Sanctioning Tornado Cash?
• Given the Sanctions on Tornado Cash, Is Ethereum Censorship Resistant?
• Preston Van Loon on Ethereum’s Merge and His Lawsuit Against Treasury

Ian Balina charges