Sen. John Hickenlooper (D-Colo.) is urging the Securities and Exchanges Commission (SEC) to issue regulations for digital-asset securities through a transparent notice-and-comment regulatory process, The Hill reported. In a letter sent to the SEC yesterday, Hickenlooper wrote that existing laws and regulations do not apply to how crypto assets are being used on the market. He said the lack of a coordinated regulatory framework can create “uneven enforcement” and deprive potential investors of “a clear understanding of how they are protected from fraud, manipulation, and abuse.” The lawmaker asked the agency to clarify what types of digital assets are securities, address how to issue and list digital securities, establish a registration service for digital asset security trading platforms, set regulations on how trading and custody of digital assets should be carried out, and determine what disclosures are required for potential investors to be informed about. “Given the complexity of these issues, and recognizing that some digital assets are securities, others may be commodities, and others may subject to a completely different regulatory regime, a formal regulatory process is needed now,” Hickenlooper wrote in his letter. “This will significantly improve policy development and allow the SEC to collect views and understand concerns. Furthermore, it will create clear rules that will benefit investors who currently may not be fully aware of the risks associated with digital asset investments.”
