In a letter on Monday, investor associations urged SEC chairman Gary Gensler to regulate the cryptocurrency industry more strictly.
- The letter signed by Americans for the Financial Reform Education Fund, the Consumer Federation of America, and others identified stablecoins, crypto loans, and exchanges as key areas in need of more regulation.
- “The marketplace for digital assets was born without any major regulatory requirements and grew into a Wild West,” the groups wrote in their letter. “There is an urgent need for the Commission and other federal financial regulators to enforce the law to better protect investors and improve the integrity and stability of digital asset markets.”
- The groups wrote that there had been rules for securities for decades and called on the SEC not to undermine such rules and their investor protection by creating “carve-outs” for certain crypto assets.
- They also highlighted USDC and Tether stablecoins as assets that appeared to be money market fund-like securities and therefore could pose significant risks to investors.
- The letter repeats many of the same positions Gensler himself took in testimony in Congress and other situations, and comes as the SEC and other regulators began taking further action against the crypto industry.
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UPDATE (September 20, 21:15 UTC):Updated with additional details on the content of the letter in the third and fourth bullet points.