What You Need to Know
- The increased use of cryptocurrency exchanges presents unique risks to consumers, Warren said.
- Gensler told lawmakers in May that Congress should look at creating a market regulator for cryptocurrency exchanges.
- Warren also asked Gensler to describe the extent of the SEC’s existing authority to regulate cryptocurrency exchanges.
Sen. Elizabeth Warren, D-Mass., is signaling that legislation may be needed to give the Securities and Exchange Commission the authority it needs to regulate cryptocurrency exchanges.
In a letter sent to SEC Chairman Gary Gensler on Wednesday and released Thursday, Warren asked Gensler if “Congress needs to act to ensure that the SEC has the proper authority to close existing gaps in regulation that leave investors and consumers vulnerable to dangers in this highly opaque and volatile market.”
Said Warren: “The increased use of cryptocurrency exchanges presents unique risks to consumers. Although they describe themselves as cryptocurrency ‘exchanges,’ these platforms lack the same types of basic regulatory protections as traditional national securities exchanges like the New York Stock Exchange or Nasdaq.”
Warren pointed to comments Gensler made to House lawmakers on May 6, in which he stated that Congress should look at creating a market regulator for cryptocurrency exchanges.