Congressman Emmer supports cryptocurrencies

Tom Emmer is known for his serious attitude towards cryptocurrency and blockchain technology and believes that it requires deeper study. In his opinion, it is too early for the government to introduce any strict restrictions on the circulation of cryptocurrency and the initial placement of coins.

Congressman Emmer spoke in support of innovation in the field of cryptocurrencies at yesterday's hearing and asked a number of questions to the Director of the Division of Corporate Finance of the SEC, William Hinman, about tokens on the public blockchain and the regulation of ICOs. 

Hinman responded that conducting initial token offerings without issuing securities is a difficult task. “Of course, there are tokens that do not have the characteristics of securities.” Elaborating his point, Hinman added: “Such tokens are not purchased as an investment, but rather for their properties, especially when it comes to the decentralized network in which they can be used.” 

This is the correct approach. The characteristics that distinguish a utility token from an investment token are its functionality and decentralization. That the SEC's director of corporate finance is looking at this issue from a similar perspective is good news for crypto market players.

Also during the hearing, Rep. Emmer spoke in support of the development of blockchain technology. He said that statements by some officials that decentralized networks are used only for fraudulent or criminal activities are as erroneous as the claims of scientists of Columbus's time that the Earth is flat.

He noted: "People tend to fear what defies their understanding. If the sailors of Columbus's time believed that the world was flat, the great discovery of the New World would never have happened." happenedhappened.”