US Lawmaker Demand Crypto Regulation from The SEC

• A U.S. Senator released a letter to the U.S. Chair on Digital Asset Regulation.
• He demands from the U.S. Chair to build prudent rules for further development in crypto.

On Oct. 13 2022, a U.S. Senator representing Colorado, John Hickenlooper, wrote a letter to the U.S. Chair, Gary Gensler. In the following letter, he strongly demands to develop crypto regulations. The letter further includes the identification of the cryptocurrencies that may be considered as securities. He pointed out the requirement of registration guidelines for the trading platforms. Moreover, as the SEC is “well positioned to offer regulatory guidance,” it can establish a regulatory framework with proper enforcement.

Hickenlooper Request From ‘The SEC’

The U.S. Senator wrote as “Given the complexity of these issues, and recognizing that some digital assets are securities, others may be commodities, and others may [sic] be subject to a completely different regulatory regime, a formal regulatory process is needed now. This will significantly improve policy development and allow the SEC to collect views and understand concerns.”

He emphasized “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.”

Hickenlooper serves the reason as “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.”

He requested the SEC to get engaged for service with the public by opening a “notice-and-comment period” that will develop rules and regulations applicable to the crypto market. He proposed to work with the regulatory body to structure such a framework, even though his committee assignments for the current meeting of Congress that were limited to only for commerce, small business, energy and natural resources, and health, education, labor and pensions.

Consequently, 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. He recognized all these complicated questions but then also wanted the SEC to get engaged.

It must be noted that Hickenlooper served Colorado as a Governor from the year 2011 to 2019 and founded the Council for the Advancement of Blockchain Technology. This Council was assigned to create a “comprehensive legal framework” to develop and support the crypto technology. However, after the completion of Hickenlooper’s service, the present Governor Jared Polis, did not re-generate the order to keep operating the council.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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