US Senator Elizabeth Warren Prods SEC To Regulate Crypto Exchanges, Warns Congress Might Need To Take ‘Additional Action’

Senator Elizabeth Warren (D-MA) says the lack of regulation in cryptocurrency markets is “unsustainable”.

The Massachusetts Democrat said in a letter to U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler that cryptocurrency exchanges should be regulated in a similar way to securities exchanges.

“As the cryptocurrency markets continue to grow and expand, the lack of regulation to provide basic investor protection is unsustainable. The SEC regulates national stock 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 if additional laws are needed to make the SEC more effective in taking over the crypto markets.

“I am writing to solicit information about the powers of the Security and Exchange Commission (SEC) to properly regulate cryptocurrency exchanges and to determine whether Congress needs to act to ensure that the SEC has the necessary authority to address existing regulatory loopholes, make investors and consumers vulnerable to dangers in this very opaque and volatile market. “

Warren also asks Gensler to what extent global cooperation is necessary to regulate the crypto markets in the US.

“To what extent do you think international coordination is needed to close loopholes in the regulation of cryptocurrency exchanges and protect investors and consumers in the United States?”

Warren appears to be delving into the creation of decentralized crypto exchanges.

“Do the characteristics of decentralized cryptocurrency exchanges compared to those required for centralized cryptocurrency exchanges justify additional investor and consumer protection?”

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Featured image: Shutterstock / GrandeDuc

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