US Senator for Colorado John Hickenlooper has written to SEC Chair Gary Gensler, urging the SEC to "to issue regulations for digital asset securities through a transparent notice-and-comment regulatory process."
He said: "Given the complexity of issues, and recognising that some digital assets are securities, others may be commodities, and others may subject to a completely different regulatory regime, a formal regulatory process is needed now."
The Senator said the SEC needs to take the following action:
• clarify what types of digital assets are securities;
• address how to issue and list digital securities;
• determine what disclosures are necessary for investors to be properly informed;
• establish a registration regime for digital asset security trading platforms; and,
• establish rules on how trading and custody of digital assets should be carried out.
Hickenlooper said that whatever the risks and benefits of 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. This creates uneven enforcement, and deprives investors of a clear understanding of how they are protected from fraud, manipulation, and abuse."