The U.S. Securities and Exchange Commission’s Investor Advisory Committee (IAC) is advising the SEC to take an aggressive stance when it comes to the regulation of cryptocurrency assets. Last Thursday, the committee submitted their views on how crypto tokens should be regulated to SEC Chairman Gary Gensler. Chris Mirabile and Leslie Van Buskirk, the committee chair and vice chairman, stated that they believe “virtually all, if not all” crypto tokens are securities, and therefore, should be subject to the same regulations as other securities.

The advisory committee’s letter to the SEC draws attention to the fact that many investors have suffered tremendous losses in crypto investments. The reported losses add up to a whopping $2 trillion. Furthermore, many crypto-related companies have filed for bankruptcy or are facing civil and criminal charges due to the lack of regulation. The IAC warns that cryptocurrencies are vulnerable to abuse due to their borderless and semi-anonymous nature, making them suitable for activities such as money laundering and tax evasion.

For these reasons, the IAC is urging the SEC to make crypto asset-related enforcement a top priority. This includes pursuing enforcement action against companies that don’t comply with the federal securities laws, as well as providing guidance for crypto investments. The IAC also suggested that the SEC may need to seek additional appropriations from Congress, in order to adequately oversee the crypto securities industry.

The Investor Advisory Committee’s opinion on the regulation of crypto assets is based on the fact that crypto tokens should be treated as securities, in order to protect investors and guard against financial-related crimes. Despite the current turmoil in the crypto space, their stance could be a sign that long-term regulations for crypto assets are on the horizon.



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