Sherrod Brown, the Democratic Chairman of the U.S. Senate Banking Committee, made a significant call to regulators concerning the cryptocurrency sector. Brown urged lawmakers, who will shape the future of cryptocurrencies, to take action and utilize their current authority for improvement.
A Letter to Regulators
Senator Brown sent a cautionary letter to the heads of the Treasury Department, Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC) about the existing and potential dangers of the crypto sector.
“I ask that your agencies assess their authorities and evaluate how we can build on our existing disclosure guardrails to effectively target the deficiencies we have observed in digital asset tokens and digital asset platforms.”Sherrod Brown.
Calls for Transparency!
Brown highlighted that the crypto sector will not regulate itself. “Ultimately, inadequate disclosures persist because opacity serves sponsors, executives, and other crypto industry insiders,” he said, pointing out that crypto companies prefer semi-transparency over full transparency. According to Brown, this situation leaves Americans in the dark and allows companies to profit.
“It is far easier to profit when customers are left in the dark. That’s why the crypto companies resist real transparency and try to force Americans to accept the paltry, self-serving disclosures endemic to the industry.”
Brown had previously praised the SEC’s sanctions on cryptocurrencies in a Senate hearing. However, this new call indicates that the Senate has yet to take proactive steps.