The pressure for legislative action regarding cryptocurrency regulation continues to increase. SEC Chair Gary Gensler sent a letter to Senator Elizabeth Warren earlier in August, responding to her letter requesting information on the SEC’s authority to regulate cryptocurrency exchanges.
The Senator, a long-time critic of cryptocurrencies, expressed her concerns of fraud, scams, and the overall the lack of a “safe cryptocurrency marketplace”. In his response, Gensler stated that “investors using these platforms are not adequately protected” and outlined some of his own concerns. Gensler ended his letter by stating that “[r]egulators would benefit from additional plenary authority to write rules for and attach guardrails to crypto trading and lending,” and said he stands ready to work with Congress to “close some of these gaps.” Perhaps we’ll see some legislative action when Congress is back in session following Labor Day.