U.S. senator, Pat Toomey has called out Gary Gensler, the present chairman of the U.S. Securities and Exchange Commission (SEC). The high ranking senator in his letter to the SEC chairman, explained that there is need for SEC to really say in clear terms, how to be in line with crypto regulations. Pat also said that the SEC could better guide the public, if they can simply show the security risks involved or the rationale behind the regulations being enforced.
U.S. Senator Pat Asks SEC to Explain Crypto Regulation in Clear Terms
Following Gensler’s testimony before the U.S. Senate Committee on Banking, Housing and Urban Affairs last week, Pat Toomey has now written a follow-up letter in response to the SEC Chairman.
Toomey expressed his concerns on the need for SEC to possibly carry out public education on crypto regulations. He also pointed out that there is need for clarity with regards to regulations around emerging technologies like cryptocurrencies.
Pat believes that the SEC, if they are to be fair, are supposed to actively engage investors. He feels the SEC should also provide rules on the go as opposed to the current strategy of forceful regulation.
The Commission has carried out over 75 enforcement actions in the crypto industry so far. SEC has also imposed fines and penalties on individual investors and crypto firms totaling over $2.5 billion.
Gensler had boasted about the success of SEC’s enforcement actions at the hearing last week. In fact, Toomey, who is a member of the senate committee, did express his concerns during the hearing before writing this letter. But it appears the Pennsylvania senator is not alone. SEC Commissioner, Hester Peirce, is also concerned about the approach of her agency in regulating crypto.
Recall that she criticized her own agency back in August for taking a forceful minded approach towards crypto regulation.
For instance, Coinbase, was recently forced to cancel plans to launch a lending product after receiving lawsuit threats from SEC. According to Coinbase, the regulator gave no explanations.
Senator Toomey concluded his letter to Gensler’s SEC by asking series of questions, hoping that the answers will provide more clarity on current crypto regulations.