Sherrod Brown, Chairman of the Senate Banking Committee in the United States, has called for stricter requirements regarding the disclosure of information by companies in the digital assets industry. He expressed this sentiment in letters directed to US Treasury Secretary Janet Yellen, SEC Chairman Gary Gensler, and CFTC Director Rostin Behnam.
Brown underscored the significant financial losses experienced by cryptocurrency investors. According to his data, investors lost around $10 billion in 2022 due to fraud and hacking attacks.
“When examining crypto-tokens, investors should be able to assess risks, avoid scams, and understand conflicts of interest. However, the absence of precise and investment-worthy information has led to the proliferation of scams, platforms vulnerable to manipulation, and hacks,” wrote the senator.
In December 2022, Brown proposed that the SEC and CFTC consider banning cryptocurrencies, although he acknowledged that implementing such a measure may prove challenging.
It’s worth noting that in September 2023, SEC Chairman Gary Gensler reaffirmed his hardline stance on digital assets, emphasizing their potential harm to the global financial system.
The calls for increased regulatory oversight by these high-ranking officials underscore the cryptocurrency market’s volatile and sometimes dangerous nature. As digital currencies continue to rise, these discussions around regulation and transparency become increasingly crucial to protect investor interests.