US Senator Hickenlooper Says SEC Crypto Regulation is ‘needed now’

In a push for more regulations of the crypto industry, US Democratic Senator John Hickenlooper has called on the Securities and Exchange Commission (SEC) to intensify its work on digital asset oversight. 

“I write to urge the SEC to issue regulations for digital asset securities through a transparent notice-and-comment regulatory process,” the senator, who represents the state of Colorado in the upper chamber, told the SEC’s chair Gary Gensler in his letter. 

According to Hickenlooper, the US regulator should implement the following activities:

• clarify what types of digital assets constitute securities;

• address how digital securities should be issued and listed;

• determine what disclosures are required for investors to ensure they are properly informed;

• set up a registration regime for digital asset security trading platforms;

• and establish rules on how trading and custody of digital assets should be implemented. 

“Whatever the risks and benefits of these new assets might be, existing laws and regulations were not designed to deal with how digital assets are being used in the market. Currently, digital asset markets do not have a coordinated regulatory framework,” the politician said. “This creates uneven enforcement, and deprives investors of a clear understanding of how they are protected from fraud, manipulation, and abuse.”

The latest move represents yet another initiative by a US Congressman to push for more crypto regulations. Most recently, Republican Senator Pat Toomey called on Congress to establish “legislative guidelines” for the crypto industry, in order to “create an environment” for the sector to “thrive” and generate wider adoption.