InfoBytes Blog
Senator urges SEC to issue crypto rulemaking
On October 13, Senator John Hickenlooper (D-CO) sent a letter to SEC Chair Gary Gensler urging him to issue regulations on digital asset securities. According to the letter, Hickenlooper urged the agency to publish regulations through a notice-and-comment process, stating that “existing laws and regulations were not designed to deal with how digital assets are being used in the market.” Hickenlooper noted that the SEC has repeatedly mentioned that existing securities regulations do not ‘cleanly apply’ to digital securities and said that retail investors may not always receive proper disclosures for comprehending the risks tied to digital assets. Hickenlooper also commented that “there are some products and investments, such as Initial Coin Offerings (ICOs), where the SEC is well positioned to offer regulatory guidance since ICOs operate similarly to a traditional financial product.” He specifically urged the SEC to, among other things, clarify what types of digital assets are securities, address how digital securities should be issued and listed, determine what disclosures are necessary for investors to be properly informed, and establish a registration regime for digital asset security trading platforms.