John Hickenlooper, Democrat from Colorado, issued a letter in the name of Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), regarding the crypto regulation on October 13.
In the letter, Hickenlooper requested the commission to take necessary steps on crypto regulations, including identifying the cryptocurrencies that can be considered securities, establishing the regulatory guidelines for trading platforms, and describing the terms and conditions for investors to be well-aware.
In his past tenure from 2011 to 2019, Hickenlooper had also shown significant interest in blockchain and had established the Council for the Advancement of Blockchain Technology, which was assigned with creating a comprehensive legal framework to support the technology. However, the succeeding officer did not continue with the plan after his tenure. Recently, Colorado also allowed the acceptance of tax payments in cryptocurrency.
As per Hickenlooper, the absence of a well-implemented and regulated framework from the administration has led to uneven enforcement, while SEC, as an organization, is well-oriented to offer the required administrative guidance.
He also highlighted several complexities of these issues and that identifying the specific digital assets as securities or commodities would come under distinct regulatory frameworks; hence a formal guideline for the regulatory process is essential. Further, he added that this would reap numerous benefits, including enhanced policy development and thus allowing the commission to integrate opinions and understand different perspectives and concerns.
The senator also requested the commission to include the public’s opinion by engaging with them via a notice and comment period while developing the rules and regulations for the Crypto administration. He also offered his help and support to the commission in forming the regulator framework through his committee assignments, considering the recent meetings of the Congress to be revolving around the same traditional topics, including commerce, small business, energy, natural resources, health, education, labor, and pensions.