Senator Warren asks SEC to properly regulate cryptocurrency exchanges
Senator Elizabeth Warren now demands some response from SEC to properly regulate cryptocurrency exchanges by end of July. The letter was made awhile addressing the SEC chairman at Washington, where Senator Elizabeth Warren demanded. The news came as a storm on July 8 since the Senator raised a concern on the risks for the consumers and investors from the market of 1.3 trillion.
What the concern is all about?
According to Senator Elizabeth Warren, there is an act that needs to be done on immediate basis to make sure that SEC follows a proper authority for closing the exiting gaps of the regulation. The letter was addressed to Chairman Gary Gensler of SEC.
The letter that was addressed was more like a concern on cryptocurrency regulation for which Senator Elizabeth Warren is expecting an answer by July 28. The Massachusetts Democrat had already been working on Economic policy as chair of the Senate Banking Committee's Subcommittee.
Warren said in the letter "The increased use of cryptocurrency exchanges presents unique risks to consumers." Further she also added "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."
The possible explanation:
The reason this concern was raised is simply to make sure she sticks to her goal which is to protect the investors from making an expansion in market for digital currencies. She also stated that the details that she has been asking would further help the congress to understand if there is any kind of act that is needed for closing the gaps that might be existing in the regulation.
She seems to have a fear that if these gaps are not filled up, it would lead the consumers and investors quite vulnerable for the risk which could be possibly volatile market and opaque too.
CBW - External Analyst