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 stressed that “some digital assets are securities, others may be commodities, and others may be subject to an entirely different regulatory regime.”
U.S. Senator Calls for “Transparent Notice and Comment Regulatory Process” to Regulate Crypto Assets
U.S. Senator John Hickenlooper (D-CO) sent a letter to Securities and Exchange Commission (SEC) Chairman Gary Gensler regarding crypto regulation.
In a letter dated October 13, the senator told Gensler that “clear rules promote an environment where investors are protected,” adding.
I am writing to urge the SEC to issue regulations for digital asset securities through a transparent notice and comment regulatory process.
and emphasized that “the SEC is not a good place to start.” Currently, there is no coordinated regulatory framework for the digital asset market. This creates uneven enforcement and deprives investors of a clear understanding of how they are protected from fraud, manipulation, and abuse.”
Noting that existing laws and regulations are not designed for digital assets, he explained that ” Applying old rules to new markets could inadvertently make financial services more expensive and less accessible, and make the SEC’s disclosure regime less useful to the American public.” The Congressman noted.
Given the complexity of these issues, a formal regulatory process is now needed that recognizes that some digital assets are securities, some are commodities, and some are subject to entirely different regulatory regimes.
“This will greatly improve policy development and allow the SEC to gather input and understand concerns.” He said.
The congressman said that the SEC should clarify what types of digital assets are securities, address how digital securities are issued and listed, establish a registration system for digital asset securities trading platforms, and establish rules on how digital assets are traded and stored. rules, and outlined key areas for the SEC to address.
I recognize that these questions are complex and it is time for the SEC to engage.
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