09 Jul Sen. Warren queries SEC chair on lack of crypto investor protection
On Tuesday, Sen. Elizabeth Warren fired off a letter to SEC Chair Jay Clayton, demanding to know why he has yet to put forth a rule to protect retail investors from fraud and theft in the cryptocurrency space. In the letter, Warren noted that Clayton has admitted that, thus far, he has not proposed a rule to protect investors from fraud, and that, in response to her questions, Clayton said that the SEC does not have enough expertise to craft a rule. Warren asked Clayton to explain why he believes it is not in the best interest of the American public to put forth a rule and how he explained that to the SEC Commissioners.
An August report from the Securities and Exchange Commission (SEC) found that the agency has yet to create policies to protect the interests of investors who want to buy and sell the growing number of cryptocurrencies. “The SEC must urgently ensure that American investors can invest in the blockchain revolution without getting duped,” said Sen. Elizabeth Warren, a Massachusetts Democrat, in a letter to SEC Chairman Jay Clayton.
Democratic senator and former US presidential candidate Elizabeth Warren has reiterated her concerns about the current regulatory climate for cryptocurrencies in the country.
According to Reuters, Senator Warren sent a letter to Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), demanding a response about the scope of the SEC’s oversight of cryptocurrency consumer protection.
In a statement by Senator Warren, the Chairman of the Subcommittee on Economic Policy complained about the lack of protection for cryptocurrency investors from the actions of scammers, adding:
These regulatory gaps put consumers and investors at risk and jeopardize the safety of our capital markets. The SEC must use its full authority to address these risks, and Congress must also take action to close these regulatory gaps.
According to Reuters, Senator Warren’s letter to Gensler asks the SEC chairman to determine whether cryptocurrency exchanges undermine the commission’s goal of ensuring a fair market environment for investments.
SEC chairman Gensler would have until the 28th. July time to respond to Senator Warren’s request.
As Cointelegraph previously reported, Senator Warren is a well-known critic of cryptocurrencies who has called virtual currencies a fake private currency.
Several government officials, including Janet Yellen, the US Treasury Secretary, are also fierce critics of cryptocurrencies.
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