Get the scoop on finance - sign up for mobile alerts
Regulators
| On
October 18, 2022

Democrat Senator Urges SEC Chair Gary Gensler To Release Clear Crypto Regulations

By Mark Emem

US Senator John Hickenlooper (D-CO) says it’s time for the U.S. Securities and Exchange Commission (SEC) to establish rules specifically designed for crypto.

In a letter to SEC chair Gary Gensler, the Democrat Senator says that clear and transparent rules create an environment that protects crypto investors while promoting financial innovation in the country.

ADVERTISEMENT

“I write to urge the SEC to issue regulations for digital asset securities through a transparent notice-and-comment regulatory process.

Whatever the risks and benefits of these new assets might be, existing laws and regulations were not designed to deal with how digital assets are being used in the market.”

Senator Hickenlooper also highlights that the application of existing rules to a new asset class will likely do more harm than good to the crypto industry.

“Currently, digital 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.

ADVERTISEMENT

At the same time, as you have repeatedly noted, existing securities regulation does not cleanly apply. Retail investors, in some circumstances, may not be getting the disclosures necessary to comprehend risks associated with digital assets since releasing such information material to investors is not required by existing rules. 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.” 

At the top of his list of concerns, Senator Hickenlooper wants the SEC to make an official distinction between crypto assets that are securities and the ones that are not.

“Accordingly, the SEC should take action including, but not limited to:

  • clarifying what types of digital assets are securities;
  • addressing how to issue and list digital securities;
  • determining what disclosures are necessary for investors to be properly informed;
  • establishing a registration regime for digital asset security trading platforms; and,
  • setting rules on how trading and custody of digital assets should be carried out.”

You can read Hickenlooper’s letter to the SEC here.

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Petrosg

ADVERTISEMENT