When Michael Cornoun gave the order to assassinate the enemy boss,"Godfather."He locked Don Cuneo in the revolving door and shot. According to SEC's recent law enforcement activities and comments from the current chairman, Gary Gensler, the current chairman of the Securities and Exchange Commission (SEC), may have handled the new US login password project by being trapped on a locked door and shot.

Don't let SEC start a dirty war on login passwords without supervision. Congress must maintain its regulatory authority and provide a reasonable and legal way to open up the market for American login password developers, entrepreneurs, and customers. Providing a common sense disclosure structure for property guarantee stable enterprises is the place to start.

Gensler's Securities and Exchange Commission seems to be trying to handle "all big family affairs" with login passwords. On February 9th SEC agreed on charges of illegally selling unregistered securities under Mr Kraken's "post-as-a-service" scheme, a way to help maintain encrypted networks. Later that month, according to media reports, SEC sent a notice to Stablecoin publisher Paxos about the work of Wells Fargo, indicating that it may have Binance contracts in the future. The token takes enforcement action, and SEC apparently also claims that it is an unregistered security. Gensler said in a recent interview that most of every new login password project-- "outside of BTC"-- becomes a SEC target.

SEC says it only enforces existing registration disclosure rules for data encryption OTP and services it calls securities. But this is false, for two reasons.

First, the securities approach to controversial new projects-Kraken's chip service and Parksos's BU.S. The scope of application of stable investment is at least controversial. This is especially true if the idea is that every login password OTP except BTC (BTC) has been considered a security. Second, a regulator is interested in giving customers the best disclosure of new products, including relatively stable products, thus giving clear and specific guidance on how to do this. The Securities and Exchange Commission hasn't even.

In the Kraken case, SEC accused its betting service of involving a security called an investment agreement. In a nutshell, such securities include an investment in expected profits based on other people's management methods or self-employed efforts. Whether the Kraken service is controversial. For Paxos, it is not clear what type of securities SEC thinks a stable dollar is and what it is, but in general, it is hard to see that the property that customers do not expect to make a profit is securities, although it is not necessarily impossible at all.

Disconcertingly, Gensler's words also imply that even relatively fragmented tokens like Ether would be treated as securities. This is inconsistent with the previous comments of senior SEC officials and the idea that the securities law is designed to deal with risk management. Risk management is a symbol of a centralized organization, not a fragmented mobile software agreement.

In addition, even if it is assumed that a specific OTP or quality is a kind of security, there is still a difficulty in applying for registration. This is the area where SEC looks like the killer closed the door.

When Gensler announced that the whole process of registration password security was "just a report on their platform", it was also completely insincere. As Michael Corleone might have been angry, Gensler's words "insulted my intelligence and made me very angry." Because, as the SEC committee Hester Peirce needs to state when resisting Kraken's actions, "in the current environment, products related to login passwords cannot be registered through SEC."

Due process plays a vital role in restoring administrative accountability. At the hearing of the House of Lords Committee on Financial institutions on February 14, Republican Senator Tim Skins said at the hearing that "if the current chairman of Gensler is going to take enforcement action, Congress must seek his advice as soon as possible." Democratic congressman Bristen Gxiangbrand expressed a similar view: "I have a lot of concerns about the current chairman of Gensler and his approach in this field."

Regulation is undoubtedly the hottest. Congress should go a step further and, by law, be the first to provide a useful way for stable people to apply for registration.

On the face of it, SEC expects foreign investors to disclose relatively stable risks to users. The key risk depends on that a smooth bond volume will "fall below $1", losing 1:1 convertibility of associated property (such as the US dollar), as foreign investors do not have their claimed risk reserves. Collateral and disclosure basic requirements regulated by the risk control system will solve this problem.

However, some people, including the US Presidential Research Group, feel that more measures are needed and that only deposit-taking institutions with insurance should sell smooth bonds. But keeping stable currency sales in the hands of financial institutions is just another way to avoid new entrants. Direct rules, rather than protectionist restrictions, are beneficial to market competition, which is the way to the dominant position of the financial industry.

The Securities and Exchange Commission should not be left in the shadow of trying to obliterate Americans' opportunities for jobs and applications in new technologies. As Patrick McBurt, the current chairman of the House of Representatives Financial Information Services Committee, knows, the future development of digital money "is an important political and economic problem that needs to be determined by Congress."

This decision generally includes running directly when stabilizing the law and democratizing accountability. After all, regulators are not qualified to dictate to Congress, "Don't ask me about business."

Jason Solloway.Is a policy investment analyst at the Cato Research Institute's Core of currency and Financial alternatives (CMFA), focusing on financial technology, data encryption and Defi. He holds a law degree from a university law department in the United States and a bachelor of arts degree from Columbia University.Jennifer J. Schulp is the director of Financial Regulation Studies at the Cato Institute’s CMFA, where she focuses on the regulation of securities and capital markets. She holds a law degree from the University of Chicago Law School and an undergraduate degree from the University of Chicago.