Re: Citizens against US exclusion from global cryptocurrency markets

Dear Congressional Rep. [Insert name of your congressional representative] [1] [2]

My name is ___________ and I am a proponent of continued access to global cryptocurrency markets. There is a fundamental change taking place in global economics, and the cryptocurrency asset class represents an important opportunity to maintain financial well-being. The import of this new asset class is globally understood among the nations of the developed world. Unfortunately, the Securities Exchange Act of 1934 and related rules and regulations, coupled with the interpretations of the SEC and FINRA present a dangerous obstacle. I want you to push to update this law before the global community excludes the United States from this critical financial innovation altogether. Time is of the essence.

Recently, several of the top global exchanges, including Binance, Bittrex International, and Poloniex, [3] have blocked or announced that they will soon block all US persons in respect to purchase and trading of certain digital assets. You can’t blame the exchanges. Some would argue, but as to US Persons, the Securities Exchange Act of 1934 prohibits these exchanges from conducting their current activities. To be clear, no one has suggested that the exchanges are conducting any fraudulent activities. It is just that the laws as currently written don’t fit. To be certain, we are in the early days and appropriate regulation is required. The key word is appropriate.

The United States securities laws must evolve as necessary to satisfy the stated goals of protecting the US investor and maintaining orderly markets, while at the same time, fostering the innovation that makes our country great. There is no reason, for instance, when providing information for investment in consumptive (“utility”) tokens to require financial disclosures applicable to analyzing debt and equity. This is one example of how the current state of the law is simply disconnected from evolving business models.

There is no doubt that government is analyzing how our country should approach this problem. Certainly, the SEC is making efforts. I’m not suggesting that they are unmotivated. I am suggesting that they are weighted down by the defense of an existing framework which just doesn’t translate.

In the meantime, we have an emergency and it demands emergency action. Please push for immediate and sufficient protection from enforcement against otherwise legitimate cryptocurrency exchanges with respect to allowing US Persons to participate. This has to happen now. As a concerned citizen of the United States, it pains me to think our country is falling into the category of being effectively sanctioned by the global cryptocurrency community as a result of antiquated legal concepts. I implore you to take swift action towards remedying this untenable situation. I know that it is a hard and long path to create a sea change in national regulation in an area as critical as securities regulation and financial markets, but this is a critical juncture in time.

Respectfully,

Voting Citizen

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