WASHINGTON—Senator Elizabeth Warren (D-MA) has written to Securities and Exchange Commission Chair Gary Gensler inquiring about the SEC’s authority to regulate cryptocurrencies and asking what future congressional regulatory action is needed.
Requesting a reply by July 28, Warren, who heads the Senate Banking Committee’s Subcommittee on Economic Policy, also warned of the risks posed by cryptocurrencies to consumers and markets, calling the crypto market “highly opaque and volatile.”
“While demand for cryptocurrencies and the use of cryptocurrency exchanges have skyrocketed, the lack of common-sense regulations has left ordinary investors at the mercy of manipulators and fraudsters … These regulatory gaps endanger consumers and investors and undermine the safety of our financial markets. The SEC must use its full authority to address these risks, and Congress must also step up to close these regulatory gaps,” Warren said in a statement.
Reuters noted Sen. Pat Toomey (R-PA), meanwhile, has caused controversy as it was revealed he had invested in Grayscale Bitcoin and Ethereum Trusts after only last month taking issue with proposed Financial Crimes Enforcement Network rules to monitor crypto transactions. Toomey had written to Treasury Secretary Janet Yellen last month to say the rules would adversely affect Americans’ “fundamental privacy,” Forkast noted.