Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Committee Advises SEC to ‘Aggressively Assert Authority’ Over Crypto – Says Virtually All Crypto Tokens Are Securities – Regulation Bitcoin News
The US Securities and Exchange Commission’s Investor Advisory Committee 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,” and urges the regulator to “make crypto-asset-related enforcement a top priority.”
SEC urged to “aggressively” assert authority over crypto-securities
The US Securities and Exchange Commission (SEC) Investor Advisory Committee (IAC) submitted its view on the regulation of cryptoassets to the SEC on Thursday. The Committee was established under Section 911 of the Dodd-Frank Act to advise the Securities and Exchange Commission on regulatory priorities.
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 formulated “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 that handle them, are subject to regulation under federal securities laws to protect investors.
Gensler also believes that all crypto-tokens, except bitcoin, are securities. He has repeatedly urged crypto trading and lending platforms to come in and register with the SEC.
“Many investors have recently suffered significant losses as a result of their investments in cryptoassets. It is estimated that these losses have been more than $2 trillion,” the IAC letter said.
The committee further pointed out that a number of well-known cryptocurrency companies have either filed for bankruptcy or are on the verge of doing so, while others have faced both civil and criminal charges. The letter adds that crypto-assets “have also been subject to significant levels of fraud and abuse” and “the semi-anonymous and borderless nature of crypto-transactions makes them well-suited for various illegal activities such as money laundering and tax evasion”.
The IAC urges the SEC to “Aggressively continue to assert authority over cryptoassets that are securities” and “make cryptoasset-related enforcement a top priority,” the IAC wrote:
The SEC should continue to be aggressive in taking enforcement action against companies that violate federal securities laws in the crypto space, including issuers, custodians, and those that act 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 necessary to provide adequate oversight of the crypto-securities industry.”
Finally, the advisory committee urged the SEC to continue providing guidance on cryptoassets, noting that the regulator should educate investors about cryptorisks and conduct investigations of broker-dealers and investment advisers to ensure proper standards of care.
What do you think about the SEC Investor Advisory Committee urging the securities regulator to “aggressively” assert authority over “almost all” crypto tokens? Let us know in the comments section below.
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