A U.S. senator has asked Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), to give clear instructions on cryptocurrency regulation. The senator said that in many implementation actions, “the SEC did not identify the rationality of their status as securities or securities involved, which would have provided much-needed public regulatory clarity.”
The US senator wants to give clear instructions to the SEC on crypto regulation
Senator Pat Tommy, a king-ranking member of the U.S. Senate Committee on Banking, Housing and Urban Affairs, wrote a letter to SEC Chairman Gary Gensler on Friday regarding cryptocurrency control.
His letter follows Gensler’s testimony before the Senate Banking Committee last week. Tommy started:
I am writing to follow the concerns I have expressed at hearings about the need for regulatory transparency around emerging technologies such as cryptocurrencies with stable currencies.
It noted that “in order for investors to benefit from a fair and competitive market, regulators must actively enforce industry road rules,” the senator said, adding that the SEC “has adopted regulation-enforcement strategies in this area instead.” To date, the Commission has taken more than 75 enforcement measures in the crypto industry and imposed more than $ 2.5 billion in fines and penalties on crypto companies and individuals.
At the Senate hearing, Gensler spoke of the “success of the SEC in following crypto-related enforcement measures.” However, Tumi noted that “in many of these application activities, the SEC did not identify the rationale for their status as securities or securities involved, which would provide the necessary regulatory clarity for the public.”
SEC Commissioner Hester Pierce is also concerned about the SEC’s approach to crypto regulation. He criticized his own agency in August for adopting an application-centric approach to crypto regulation.
The Pennsylvania senator noted that the SEC’s view seems to be related to Gensler’s belief that “that possibility is quite remote” that any given cryptocurrency platform has zero security. For example, at the Jensler hearing, Senator Elizabeth Warren was told that the Nasdaq-listed crypto exchange coinbase (Nasdaq: COIN) could contain dozens of tokens that could be securities.
Recently, the SEC threatened to sue and the company claimed it had not received any explanation from the regulator. Meanwhile, Securities Watchdog XRP has an ongoing lawsuit against Ripple Labs and its executives over whether it is a security.
Senator Tommy emphasized:
The SEC has a responsibility to do more than just make possible assumptions.
The senator concludes his letter with a list of questions he wants Gensler to answer in an effort to get additional guidance on crypto regulation.
What does Senator Tommy think about giving SEC Chairman Gensler clear guidelines for crypto regulation? Let us know in the comments section below.
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