U.S. Sen. John Hickenlooper (D-CO) forwarded correspondence to Securities and Exchange Commission (SEC) Chair Gary Gensler, expressing his support of the agency formally engaging in cryptocurrencies oversight.
Hickenlooper cited existing regulations’ inadequacies while encouraging Gensler to take action to better regulate the cryptocurrency industry.
“I write to urge the SEC to issue regulations for digital asset securities through a transparent notice-and-comment regulatory process,” Hickenlooper wrote. “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. Currently, digital asset markets do not have a coordinated regulatory framework.”
SEC actions, per Hickenlooper, should include 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, and establishing a registration regime for digital asset security trading platforms.
“Given the complexity of these issues, and recognizing that some digital assets are securities, others may be commodities, and others may be subject to a completely different regulatory regime, a formal regulatory process is needed now,” Hickenlooper concluded. “This will significantly improve policy development and allow the SEC to collect views and understand concerns. Furthermore, it will create clear rules that will benefit investors who currently may not be fully aware of the risks associated with digital asset investments.”