The Investor Advisory Committee of the US Securities and Exchange Commission has advised the SEC to “aggressively” assert authority over crypto assets that are securities. The advisory committee believes that “virtually all, if not all, crypto tokens are securities,” urging the regulator to “make enforcement related to crypto assets a top priority.”
SEC Urged to “Aggressively” Assert Authority Over Crypto Securities
The Investor Advisory Committee (IAC) of the US Securities and Exchange Commission (SEC) submitted its opinion on the regulation of crypto assets to the SEC on Thursday. The committee was established under Section 911 of the Dodd-Frank Act to advise the securities watchdog on regulatory priorities.
In their letter to SEC Chairman Gary Gensler, IAC Chairman Christopher Mirabile and Vice Chairman Leslie Van Buskirk explained that they are presenting the articulated opinion “as a consensus of the IAC members.” They wrote:
We believe that virtually all, if not all, cryptographic tokens are securities and that they, as well as the platforms and custodians that handle them, are subject to regulation under federal securities laws to protect investors.
Gensler also believes that all crypto tokens, other than bitcoin, are securities. He has repeatedly urged cryptocurrency trading and lending platforms to come in and register with the SEC.
“Recently, many investors have suffered significant losses as a result of their investments in crypto assets. It is estimated that these losses have been of more than $2 billion”, details the letter from the IAC.
The committee further noted that numerous well-known cryptocurrency companies have filed or are about to file for bankruptcy, while others have faced civil and criminal charges. The letter adds that crypto assets “have also been subject to notable levels of fraud and abuse” and “the borderless and semi-anonymous nature of crypto transactions makes them suitable for various illegal activities such as money laundering and tax evasion.” .
Calling on the SEC to “continue to aggressively assert authority over crypto assets that are securities” and “make enforcement related to crypto assets a top priority,” the IAC wrote:
The SEC should continue to be aggressive in bringing enforcement actions against companies that violate federal securities laws in the crypto space, including issuers, custodians, and those acting as unregistered platforms that offer exchanges for investments in crypto assets.
In addition, the IAC advised the SEC to “seek appropriate additional appropriations from Congress where necessary to properly oversee the crypto securities industry.”
Lastly, the advisory committee urged the SEC to continue to provide guidance on crypto assets, noting that the regulator should educate investors on the risks of crypto and conduct examinations of stockbrokers and investment advisers to ensure standards. of proper care.
What do you think about the SEC Investor Advisory Committee urging the securities regulator to “aggressively” assert authority over “virtually all” crypto tokens? Let us know in the comments section.
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