The U.S. Securities And Exchange Commission’s Investor Advisory Committee has given advice to the SEC to take a strong stance on crypto assets that are classed as securities. The advisory committee believes “virtually all, if not all, crypto tokens are securities,” and the regulator should “make crypto asset-related enforcement a top priority.”
SEC Told to Take Action on Crypto Securities
The U.S. Securities And Exchange Commission (SEC) Investor Advisory Committee (IAC) issued a letter to the SEC on Thursday, under the leadership of Section 911 of the Dodd-Frank Act, recommending the regulator take action on crypto assets.
The IAC, chaired by Christopher Mirabile And Vice Chair Leslie Van Buskirk, explained that the views expressed in the letter are “a consensus of the IAC members.” They wrote:
We Believe that most, if not all, cryptocurrency tokens are securities. To protect investors, they will be subject to regulation by the federal securities laws.
SEC Chairman Gary Gensler also believes that all crypto tokens, apart from bitcoin, are securities. The regulator has been encouraging crypto trading platforms and lending platforms to register with it.
“Many investors recently have suffered significant losses as a result of their investments in crypto assets. It is estimated that these losses have been more than $2 trillion,” according to the IAC letter.
The committee also noted that many well-known crypto companies have filed for bankruptcy or are in the process of filing. Other companies have faced civil and criminal charges. The letter adds crypto assets “have also been subject to notable levels of fraud and abuse” and “the semi-anonymous and borderless nature of crypto transactions make them well-suited for various illegal activities such as money laundering and tax evasion.”
The IAC urged the SEC “aggressively continue to assert authority over crypto assets that are securities” and “make crypto asset-related enforcement a top priority.” The advisory committee wrote the following:
The SEC should not hesitate to take enforcement action against any company that violates the federal securities laws in cryptospace, including issuers and custodians.
The IAC also advised the SEC to “seek appropriate additional appropriations from Congress where needed to adequately oversee the crypto securities industry.”
Lastly, the advisory committee asked the SEC for guidance on crypto assets. It noted that the regulator should educate investors about crypto risks and examine investment advisors and broker-dealers to ensure high standards of care.
What do you think about the SEC Investor Advisory Committee urging the securities regulator to “aggressively” assert authority “virtually all” crypto tokens? Please let us know by commenting below.
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