In a letter to the SEC chairman, the US investor advocacy group called the cryptocurrency industry “Wild West” and called for stricter regulation.
According to Bloomberg, the American Federation of Consumers (AFREF) and other organizations have sent a collective letter to Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), highlighting key areas of the cryptocurrency industry that need stricter regulation.
“Without proper regulation, the digital asset market has become the Wild West,” the authors of the letter write. “The SEC and other federal financial regulators urgently need to enforce the law to better protect investors and increase the integrity and stability of digital asset markets.”
Investor advocacy groups note that securities regulations have been in place for decades. They urge the SEC not to undermine investor protection by creating exceptions for certain crypto assets. The organizations have singled out the USDC and USDT stablecoins as assets, which are securities similar to money market funds. Stablecoins, like securities, carry significant risks for investors, AFREF believes.
Recall that this week the influential New York Times drew attention to the problem of stablecoin development and predicted five ways for the authorities to regulate them.