Committee Advises SEC to ‘Aggressively Assert Authority’ Over Crypto

Committee Advises SEC to ‘Aggressively Assert Authority’ Over Crypto – The Investor Advisory Committee (IAC) of the U.S. Securities and Exchange Commission (SEC) submitted its opinion on the regulation of crypto assets to the SEC. Section 911 of the Dodd-Frank Act established the committee to advise the securities regulator on regulatory priorities.

- Advertisement -

In their letter to SEC Chairman Gary Gensler, IAC Chair Christopher Mirabile and Vice Chair Leslie Van Buskirk explained that they are submitting the view articulated “as a consensus of the IAC members.” They wrote: “We believe that virtually all, if not all, crypto tokens are securities and that they, as well as the platforms and custodians dealing with them, are subject to regulation under the federal securities laws to protect investors.”

People Also Read: Central Bank of Sri Lanka Warns of ‘Significant Risks’ in Using and Investing in Crypto

Additionally, Gensler believes that all crypto tokens besides bitcoin are securities. He has repeatedly urged platforms for crypto trading and lending to register with the SEC. Numerous investors have recently sustained significant losses due to their investments in crypto assets.

“It is estimated that these losses have been more than $2 trillion,” the IAC letter details. The committee also noted that a number of well-known cryptocurrency companies have filed for bankruptcy or are on the verge of doing so, while others have been subject to both civil and criminal proceedings.

- Advertisement -

The letter adds that crypto assets “have also been subject to notable levels of fraud and abuse” and “the semi-anonymous and borderless nature of crypto transactions make them well-suited for various illegal activities such as money laundering and tax evasion.”

People Also Read: US Justice Department Seizes Cryptocurrency Worth $112 Million

Calling on the SEC to “Aggressively continue to assert authority over crypto assets that are securities” and “make crypto asset-related enforcement a top priority,” the IAC wrote: “The SEC should continue to be aggressive in bringing enforcement actions against companies that are violating the federal securities laws in the crypto space, including, issuers, custodians and those acting as unregistered platforms that offer trading in crypto asset investments.”

In addition, the IAC advised the SEC to “Seek appropriate additional appropriations from Congress where needed to adequately oversee the crypto securities industry.” The advisory committee urged the SEC to continue providing guidance on crypto assets, noting that the regulator should educate investors on crypto risks and examine broker-dealers and investment advisors to ensure appropriate standards of care.

Most Read From Evoclique

SEC Takes Action Against Crypto Trading Platform Beaxy and Its Executives

SEC Urges Investors to Be Cautious With Crypto Securities

Texas Lawmaker Launches Resolution to Protect Bitcoin Investors

- Advertisement -


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More From Evoclique