SEC Cryptocurrency Supervisor Urged To Provide Guide And Education For Crypto Investors

The SEC is urged to provide crypto education. (Photo; Doc. Blockchain News)

JAKARTA - The Investor Advisory Committee (IAC) of the United States Securities and Exchange Supervisory Agency (SEC) raised its views on crypto asset regulation to the SEC on Thursday. The committee was founded under Section 911 of the Dodd-Frank Law to advise securities supervisors on regulatory priorities.

In their letter to SEC Chair Gary Gensler, IAC Chair Christopher Mirabile and Deputy Chairman Leslie Van Buskirk explained that they proposed the view "as a consensus for IAC members". They wrote:

"We believe that almost all, if not all, crypto tokens are securities and that they, as well as platforms and warehousers dealing with them, are subject to regulations under federal laws on securities to protect investors."

Gensler also believes that all crypto tokens, except bitcoin, are securities. He has repeatedly appealed to trading platforms and crypto lending to register with the SEC.

"Many investors have recently suffered significant losses due to their investment in crypto assets. It is estimated that this loss has reached more than US$2 trillion (around Rp29.7 quadrillion)," according to IAC's letter, quoted by Bitcoin.com News.

The committee also shows that many well-known crypto companies have filed for bankruptcy or are on the verge of bankruptcy, while others face civil and criminal charges.

The letter also adds that crypto assets "have also been subjected to significant levels of fraud and abuse" and "semi-anonymous and free-bounded crypto transactions make them well suited for various illegal activities such as money laundering and tax evasion."

Invite the SEC to "Try aggressively to continue upholding the authority over crypto assets that are securities" and "make law enforcement related to crypto assets a top priority," the IAC wrote:

The SEC must continue to take firm action in taking law enforcement action against companies that violate federal laws on securities in crypto spaces, including publishers, depositors, and those acting as non-registered platforms offering trade in crypto asset investments.

In addition, the IAC advises the SEC to "Search sufficient budget allocation from Congress if necessary to adequately monitor the crypto securities industry."

Finally, the advisory committee urged the SEC to continue providing guidance on crypto assets, stressing that regulators should provide education to investors about crypto risks and conduct checks on investment brokers and advisors to ensure appropriate care standards.