" US lawmakers demand that the SEC regulate cryptocurrency "
US lawmakers demand that the SEC regulate cryptocurrency
On October 13, 2022, John Hickenlooper, a U.S. Senator from Colorado, wrote a letter to the U.S. Chair, Gary Gensler. In the letter that follows, he insists on the creation of crypto regulations. The letter also includes a list of cryptocurrencies that could be considered securities. He emphasized the need for trading platform registration guidelines. Furthermore, because the SEC is "well positioned to offer regulatory guidance," it can create a regulatory framework that is properly enforced.
Hickenlooper Request From 'The SEC'
"Given the complexity of these issues, and acknowledging that some digital assets are securities, others may be commodities, and others may be subject to a completely different regulatory regime," the US Senator wrote. This will greatly improve policy development and allow the SEC to gather feedback and understand concerns.
He emphasized, "At the moment, digital asset markets lack a coordinated regulatory framework. This leads to uneven enforcement and a lack of clarity for investors about how they are protected from fraud, manipulation, and abuse."
"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," Hickenlooper explains.
He asked the SEC to get involved in public service by launching a "notice-and-comment period" to develop rules and regulations for the crypto market. He proposed working with the regulatory body to develop such a framework, despite the fact that his committee assignments for the current Congress meeting were limited to commerce, small business, energy and natural resources, and health, education, labor, and pensions.
As a result, the SEC should take actions such as clarifying what types of digital assets are securities, addressing how to issue and list digital securities, determining what disclosures are required for investors to be properly informed, establishing a registration regime for digital asset security trading platforms, and establishing rules on how digital asset trading and custody should be carried out. He recognized all of these complex issues, but he also wanted the SEC to get involved.
It should be noted that Hickenlooper served as Governor of Colorado from 2011 to 2019 and established the Council for the Advancement of Blockchain Technology. This Council was tasked with developing and supporting crypto technology by developing a "comprehensive legal framework." However, after Hickenlooper's tenure ended, the current Governor, Jared Polis, did not renew the order to keep the council running.