The investor advisory committee (IAC) of the U.S. securities and exchange commission (SEC) has argued that virtually all cryptocurrencies are securities and as such, the SEC must continue to aggressively regulate the crypto industry.
IAC calls for more stringent crypto regulation
As the battle for supremacy between the SEC and its counterpart, the commodities futures trading commission (CFTC), over which regulator should be the ultimate watchdog of the burgeoning web3 ecosystem, the IAC has shared its perspective concerning digital assets regulation.
According to a letter sent to SEC chairman Gary Gensler, the IAC, an agency that provides the regulator with advice and recommendations on regulatory priorities, securities products regulation, and more, virtually all cryptocurrencies currently on the market are securities and therefore, must come under the purview of the dreaded regulator.
The IAC argues that the exponential growth witnessed by the cryptospace in recent years has also come with huge losses for inexperienced investors seeking quick investment growth without first understanding the inherent risks.
Against that backdrop, the IAC has urged the SEC to continue to aggressively regulate and assert its authority over cryptocurrencies that are under the securities category, as well as, exchanges or trading platforms that support such tokens.
The IAC has also asked the SEC to be relentless in its efforts to provide guidance for crypto-focused businesses to follow and issue a request for comments regarding grey areas where more guidance is needed concerning the application of federal securities laws to cryptocurrencies.
Finally, the agency has urged the SEC to prioritize taking enforcement actions against crypto firms.