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 subject to a completely different regulatory regime.”
US Senator Calls for ‘Transparent Notice-and-Comment Regulatory Process’ to Regulating Crypto Assets
U.S. U.S. Senator John Hickenlooper (D-CO), has written a letter regarding crypto regulations to Gary Gensler (chairman of the Securities and Exchange Commission, SEC).
In his letter dated Oct. 13, the senator told Gensler, “Clear rules promote an environment where investors are protected,” adding:
This letter is to request that the SEC issue digital asset security regulations through transparent notice and comment regulatory processes.
He stressed: “Currently, digital asset markets do not have a coordinated regulatory framework. 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 were not designed for digital assets, he explained: “Applying the old rules to the new market could inadvertently cause financial services to be more expensive, less accessible, and the SEC’s disclosure regime to be less useful to the American people.” The senator noted:
A formal regulatory process for digital assets is required now, due to the complex nature of these issues and recognition that certain digital assets may be securities and some may also be commodities.
“This will significantly improve policy development and allow the SEC to collect views and understand concerns,” he said.
After defining some key areas for the SEC to address, the senator went on to discuss how the SEC could issue digital securities. He also addressed how digital securities can be issued and listed. The registration scheme would allow digital security trading platforms to register. And, the rules regarding trading and custody should be established.
Although I am aware that these are complex questions, it is now time for me to call the SEC.
Let us know your thoughts on the SEC Chairman Gary Gensler’s letter to Senator Hickenlooper. Please leave your comments below.
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