SEC Investor Advisory Committee calls most crypto assets securities, urges ‘aggressive‘ action

The Investor Advisory Committee (IAC) of the U.S. Securities and Exchange Commission (SEC) has urged SEC Chairman Gary Gensler to tighten regulation of cryptocurrencies, describing most cryptocurrencies as securities.

and April 6 letterThe IAC said it was pleased with the SEC’s actions on cryptocurrencies. The IAC further encouraged regulators to continue to assert their power over crypto assets that are securities and trading platforms that list such assets.

Meanwhile, the IAC has advised the SEC to continue to provide guidance on cryptoassets and to prioritize enforcement of cryptoassets.

The letter highlights the increase in activity in the crypto space over the past five years. It also said that market volatility, along with fraud and abuse in the industry, has led to more than $2 trillion in losses.

The committee reiterated Gensler’s view that nearly all crypto assets are securities.

“We believe that virtually all, if not all, cryptocurrency tokens are securities and, like the platforms and custodians that trade them, are subject to regulation under federal securities laws to protect investors. increase.”

As such, the IAC hopes the SEC will continue to be proactive in enforcement actions against companies that violate securities laws.

SEC Regulatory Actions Against Crypto

The Gensler-led regulator has taken more than a dozen regulatory actions against market participants, including Kraken, Do Kwon, Justin Sun, and several crypto influencers.

Other entities such as Paxos and Coinbase have also received Wells Notices from regulators.

Meanwhile, the SEC’s sister regulator, the Commodity Futures Trading Commission (CFTC), has filed a civil lawsuit against Binance and some key executives, including CEO Changpeng ‘CZ’ Zhao.

Cryptocurrency stakeholders have described increased regulatory scrutiny as “Operational Chokepoint 2.0.”These Stakeholders Claim These Actions Could Drive Crypto Firms Out of the U.S.

The Post-SEC Investor Advisory Board calls most cryptocurrency securities urging “proactive” behavior that first appeared on CryptoSlate.

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