The chair of the Senate Banking Committee, Sherrod Brown has urged key federal agencies to use their existing authority to address concerns within the cryptocurrency industry and enhance transparency to protect investors.
Brown sent a letter to three pivotal figures in the U.S. financial landscape: Treasury Secretary Janet Yellen, Securities and Exchange Commission (SEC) Chair Gary Gensler, and Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam.
He emphasized the importance of assessing their current authorities and leveraging them to target deficiencies observed in digital asset tokens and platforms.
The letter has more significance given the context that Senator Brown has ultimate power over crypto’s congressional destiny.
Senator Sherrod Calls to Enhance Transparency in Crypto
The senator’s concerns revolve around the lack of self-policing within the cryptocurrency industry, arguing that opacity benefits insiders, sponsors, and executives.
He asserted that inadequate disclosures persist because it is more profitable when customers are left in the dark.
Consequently, Brown called for real transparency and criticized the industry’s attempts to impose limited, self-serving disclosures.
This strong stance from Senator Brown is noteworthy given the uncertainty surrounding his legislative intentions.
While the House of Representatives has made progress in advancing crypto-related bills for floor votes, the Senate has been relatively inactive, with several bills awaiting committee action.
The cryptocurrency industry and regulators have urged lawmakers to develop tailored rules for this unique sector.
Crypto Industry Continues to Wait for Clear Regulations
Brown’s statement suggests the need for new regulations, even if Congress has not yet provided a clear roadmap for agencies to follow in drafting them.
While Senator Brown did not explicitly endorse specific legislation, he highlighted the importance of Congress providing Americans with the necessary information.
He stressed the need for transparency and accountability by using existing tools to combat bad actors in the crypto space.
SEC Chair Gary Gensler has previously stated that new crypto legislation may not be necessary, as existing securities laws could effectively regulate the industry.
Gensler’s approach has been to classify most cryptocurrencies as securities and to call on crypto exchanges to register with the SEC.
Senator Brown’s call for enhanced transparency represents a significant development in the ongoing debate over the future regulatory framework for digital assets in the United States.