Senator Elizabeth Warren (D-MA) says that the lack of regulation in the cryptocurrency markets is ‘unsustainable’.
The Massachusetts Democrat says in a letter to the Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, that cryptocurrency exchanges should be regulated similarly to securities exchanges.
“As the cryptocurrency markets continue to grow and expand, the lack of regulation to provide basic investor protections is unsustainable. The SEC regulates national securities exchanges, and cryptocurrency exchanges that operate in a similar manner should be subject to similar regulatory standards.”
While inviting Gensler to shed light on the matter, Senator Warren says she needs more information to determine whether or not additional legislation is required to make the SEC more effective in taking on the crypto markets.
“I write to request information regarding the Security and Exchange Commission’s (SEC’s) authority to properly regulate cryptocurrency exchanges and to determine if Congress needs to act to ensure that the SEC has the proper authority to close existing gaps in regulation that leave investors and consumers vulnerable to dangers in this highly opaque and volatile market.”
Warren also asks Gensler about the extent to which global cooperation is necessary to regulate crypto markets in the US.
“In your view, to what extent is international coordination needed to address gaps in the regulation of cryptocurrency exchanges and ensure the protection of investors and consumers in the United States?”
Warren appears to be concerned with the emergence of decentralized crypto exchanges.
“Do the characteristics of decentralized cryptocurrency exchanges warrant additional investor and consumer protections relative to those needed for centralized cryptocurrency exchanges?”