A letter has been sent by 8 US congressmen to the US Securities Exchange and Commission (SEC) on the concerns related to rules & systems on the Crypto companies.
The US securities and exchange commission (SEC) agency is responsible for regulating the spot cash market of stock & crypto, while derivatives and futures-related market control are in the hands of the CFTC agency. According to the majority of the crypto companies, the regulation and action system of the SEC agency is very tight against Crypto over the traditional market.
On 16 March, Eight members of the United States Congress wrote a letter to the country’s regulatory body SEC and asked for the agency’s information-seeking mechanism, where crypto projects and startups are concerned against the existing systems and rules.
This letter was sent under the collaborative efforts of Tom Emmer, Darren Soto, Warren Davidson, Jake Auchincloss, Byron Donalds, Josh Gottheimer, Ted Budd, and Ritchie Torres. Through the letter, they address SEC chairman Gary Gensler on this matter.
Mr. Tom Emmer notified his followers about this step on Twitter. Tom said that the latest steps are taken because of the requests, which were coming from the crypto companies on the reporting system of the SEC agency, which is a very big burden.
Mr. Tom said that SEC rulings on crypto companies and reporting requirements are under the system to follow the rules perfectly but there should be clarity that no one company face any kind of infringement under such processes.
” It must ensure that these inquiries don’t infringe on the standards established in the Paperwork Reduction Act, which limits the burden on the government. imposes on private businesses & citizens.”
The main paragraph in which the letter noted the main concerns between crypto companies and SEC agency below:
“It appears that there has been a recent trend towards employing the Enforcement Division’s investigative functions to gather information from unregulated cryptocurrency and blockchain industry participants in a manner inconsistent with the Commission’s standards for initiating investigations.”
Here this bipartisan letter to the US regulators is hinting that not only particular numbers of companies but also many crypto companies are under threat of the highly strict rules and standards, which are not the same as traditional financial companies.