Investor advocacy teams urged SEC chair Gary Gensler to extra tightly regulate the cryptocurrency trade in a letter on Monday.
- The letter signed by People for Monetary Reform Training Fund, the Client Federation of America and others, specified stablecoins, crypto lending and exchanges as key areas in want of extra regulation.
- ”With out important regulatory steering, the digital asset market has been born and grown right into a Wild West,” the teams wrote of their letter. “It’s pressing for the Fee and different federal monetary regulators to implement the legislation to raised shield buyers and enhance the integrity and stability of the digital asset markets.”
- The teams wrote that guidelines governing securities had been in place for many years and urged the SEC to not undermine such rules and their investor protections by creating “carve-outs” for sure crypto property.
- In addition they singled out stablecoins USDC and Tether as property that gave the impression to be securities just like cash market funds, and that thus might pose important dangers to buyers.
- The letter reiterates most of the similar positions that Gensler himself has espoused in testimony earlier than Congress and in different settings, and arrives because the SEC and different regulators have began to pursue extra actions towards the crypto trade.
Learn extra: Coinbase Drops Deliberate ‘Lend’ Program After SEC Warning
UPDATE (Sept. 20, 21:15 UTC): Up to date with extra particulars on the content material of the letter within the third and fourth bullet factors.