SIFMA Says Digital Asset Framework Should Build Upon Existing Regulations

SIFMA recommended that Congress craft legislation on regulating digital assets that (i) prioritizes investor protections, (ii) applies a technology-neutral approach and (iii) follows the "same activity, same risk, same regulatory outcome" principle.

In a letter to the Senate Banking Committee, Senate Agriculture Committee, House Financial Services Committee and House Agriculture Committee, SIFMA asserted that existing federal securities laws already provide robust protections for investors, and that Congress should build on existing regulations when designing a digital asset framework. SIFMA said that applying a technology-neutral approach that builds on existing regulations will put investors in the best situation to make safe and informed investment decisions.

SIFMA argued that any regulation established to fill the gaps should focus on the asset or activity rather than the technology.

SIFMA said that Congress will play an important role in "leading the effort to provide structure and legal certainty for this developing market." SIFMA said that existing regulatory framework can apply to certain assets, like stablecoins, with little to no modification.