US Senators Write Letter Asking FED & SEC For Crypto Regulations Clarity

US Senators Write Letter Asking FED & SEC For Crypto Regulations Clarity.

Recently on the 24th of October, five different US senators have come together to write a letter to a number of financial regulators asking for further clarification in relation to cryptocurrencies.

About The Letter

Written by Senators Elizabeth Warren, Alexandria Ocasio-Cortez, Sheldon Whitehouse, Rashida Tlaib and Jesús García, the letter also addresses a number of financial regulators including the Federal Reserve, the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Treasury, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC).

The letter asks these regulators on more clarity, asking what each agency is doing in their part to prevent unethical lobbying practices within the crypto industry.

The letter reads, “We write seeking information about the steps your agency is taking to stop the revolving door between our financial regulatory agencies and the cryptocurrency (crypto) industry.”

“The crypto sector has rapidly escalated its lobbying efforts in recent months, spending millions in an attempt to secure favorable regulatory outcomes as Congress and federal agencies work to craft and enforce rules to regulate this multitrillion-dollar industry.”

Related: Australia Federal Budget Emphasizes BTC Will Continue to be Treated as a Digital Assets 

The senators then compare crypto industry companies to that of Wall Street executives, hiring ex-government officials in order to have an insight into what the government are doing in relation to policies and regulations on crypto.

“As part of this influence campaign, crypto firms have hired hundreds of ex-government officials. We have long been aware of the revolving door in other sectors of the economy – from big tech, to the defense industry, to other parts of the financial services sector – and we are concerned that the crypto revolving door risks corrupting the policymaking process and undermining the public’s trust in our financial regulators.”

“Just as powerful Wall Street interests have long exercised their influence over financial regulation by hiring former officials with knowledge of government’s inner workings, crypto firms appear to be pursuing the same strategy in order to secure ‘a regulatory system to the industry’s exact specifications.”

Regulators On Crypto Regulations From SEC

For years now regulators have been struggling on creating appropriate policies and regulations for cryptocurrencies. This could mostly be blamed due to the fact that crypto exchanges argue that regulators have yet to create a clear definition of which cryptocurrencies could be identified as securities and which as commodities.

Related: Post-Merge Ethereum Could Be Securities Now, SEC Says

The SEC chair Gary Gensler specifically has earned a considerable amount of criticism from the crypto community due to his constant view of most cryptocurrencies being securities. With the only exception being Bitcoin.

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