Jamal Al-Farouq The people that are responsible for making sure stock markets are fair in the US think almost all “crypto tokens” (which have to do with money) should be regulated. They want the government to make it a priority to make sure these kind of assets don’t get used illegally.
Protecting Crypto Investors
The US government recently asked for advice on how to regulate crypto assets like Bitcoin. This advice was given by the SEC Investor Advisory Committee which is a group set up for this specific purpose according to the Dodd-Frank Act.
The IAC (which includes Chair Christopher Mirabile and Vice Chair Leslie Van Buskirk) wrote a letter to SEC Chairman Gary Gensler. They want him to know that their opinion is what the majority of IAC members believe – that crypto tokens, platforms, and custodians dealing with them should all be subject to regulation from the federal securities laws in order to protect investors.
Crypto token expert Gensler thinks bitcoin is the only one that doesn’t count as a security. He’s telling trading and lending platforms to register with the SEC because lots of people have recently lost more than $2 trillion from investing in crypto assets.
The committee said that some famous crypto companies have gone bankrupt or are about to, and some others faced legal problems. Additionally, the letter noted that cryptocurrencies can be used in bad ways such as money laundering and not paying taxes.
The IAC has asked the SEC to take control of crypto assets that are considered securities, and make punishing people who break the law by trading with crypto investments their highest priority. The SEC should be tough on anyone who isn’t obeying the federal laws about crypto assets like issuers, custodians, and platforms that are trading crypto asset investments without registering.
The IAC suggested that the SEC should ask Congress for more money so they can watch over the crypto securities industry. They also said that the SEC should show people about the risks of using crypto and to check broker-dealers and investment advisors so they follow all the rules.
Do you have an opinion about the SEC Investor Advisory Committee asking the securities regulator to do something aggressively involving crypto tokens? Share your thoughts in the comments section below.
