A US senator has urged the Securities and Exchange Commission (SEC) to issue crypto regulations now “through a transparent notice-and-comment regulatory process.” He emphasized that “some digital assets are securities, others may be commodities, and others 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 regulations.
In his letter dated Oct. 13, the senator told Gensler, “Clear rules promote an environment where investors are protected,” adding:
I am writing to urge the SEC to issue digital asset securities regulations through a transparent notice-and-comment regulatory process.
He stressed: “Currently, digital asset markets do not have a coordinated regulatory framework. This creates uneven enforcement, depriving 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 SEC’s disclosure regime less useful to the American people.” The senator noted:
Given the complexity of these issues, and recognition that some digital assets are securities, others may be commodities, and others may be subject to an entirely different regulatory regime, a formal regulatory process is needed now.
“This will significantly improve policy development and allow the SEC to gather views and understand concerns,” he said.
The senator went on to outline some of the key areas that the SEC should address, including clarifying what types of digital assets are securities, addressing how to issue and list digital securities, establishing a registration regime for trading platforms for digital asset securities, and setting rules on how trading and custody of digital assets shall be carried out.
I realize these issues are complicated, but it is time for the SEC to get involved.
What do you think of the letter from Sen. Hickenlooper to SEC Chairman Gary Gensler? Let us know in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.