U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has reached out to Massachusetts Democratic Senator Elizabeth Warren for regulatory support.
In a letter dated August 5, the SEC Chairman told the Democratic Senator that regulators need more resources to protect investors. He also said they should be given clear powers to write rules for exchanges, including those for decentralized finance (DeFi).
“We need additional authorities to prevent transactions, products and platforms from falling between regulatory cracks,” he wrote. His letter was a response to an open letter Warren had written to him last month about his plans for policing the industry. The Massachusetts Senator had originally asked Gensler to reply by July 28.
Although many crypto advocates were initially enthusiastic about Gensler’s appointment, he has proven to disappoint them. Despite teaching about blockchain technology at the Massachusetts Institute of Technology, Gensler recently declared that he is “neutral” about cryptocurrencies. While “intrigued” by them, Gensler clarified that he’s “not neutral about investor protection.”
Instead of letting crypto off the hook, Gensler is instead considering establishing a robust cryptocurrency regulatory framework. This would include bringing crypto exchanges under control, something which has been speculated as a reason for the delay on a decision for Bitcoin exchange-traded funds. However, he believes that this will ultimately lead to greater adoption of the digital assets. Additionally, Gensler informed Warren about his concern regarding stablecoins.
Warren’s stance on crypto
Meanwhile, Senator Warren has made several statements making it clear that she intends to take cryptocurrencies to task. Last week, Warren called on Treasury Secretary Janet Yellen to address what she understands as “danger” from cryptocurrencies. In a letter, the senator urged Yellen to compose a “coordinated and cohesive regulatory strategy,” via which federal entities can regulate digital currencies. More recently, Warren called on U.S. policymakers and regulators to do more to police cryptocurrencies.