A U.S. senator has called on the Securities and Exchange Commission (SEC) to issue crypto regulations now “through a transparent notice-and-comment regulatory process.” He pointed out that “some digital assets are securities, some may be commodities, and some may be subject to a completely different regulatory regime.”
US Senator Calls For “Transparent Notice-and-Comment Regulatory Process” to Regulate Crypto Assets
US Senator John Hickenlooper (D-CO) has sent a letter to Securities and Exchange Commission (SEC) Chairman Gary Gensler regarding crypto regulation.
In his letter dated Oct. 13, the senator told Gensler, “Clear rules foster an environment where investors are protected,” adding:
I am writing to urge the SEC to enact regulations for digital asset securities through a transparent notice-and-comment regulatory process.
He pointed out: “Currently, digital asset markets lack a coordinated regulatory framework. This creates uneven enforcement and deprives investors of a clear understanding of how they are protected against fraud, manipulation and abuse.
Noting that existing laws and regulations were not designed for digital assets, he explained: “Applying the old rules to the new market could inadvertently make financial services more expensive, less accessible, and the disclosure regime of the SEC less useful to Americans. people.” The senator noted:
Given the complexity of these issues and the fact that some digital assets are securities, others may be commodities, and others may be subject to a completely different regulatory regime, a formal regulatory process is now required.
“This will significantly improve policymaking and allow the SEC to gather opinions and understand concerns,” he said.
The senator went on to outline some of the key areas the SEC should address, including clarifying the types of digital assets that securities are, how to issue and list digital securities, establishing a registration for digital asset securities trading platforms and the establishment of rules on how the trading and custody of digital assets must be carried out.
I recognize that these issues are complicated, but it’s time for the SEC to get involved.
What do you think of Senator Hickenlooper’s letter to SEC Chairman Gary Gensler? Let us know in the comments section below.
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