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Legislators Question SEC IAC Letter Calling All Crypto Tokens "Securities"

Senate Banking Committee Member Bill Hagerty (R-TN) and House Financial Services Committee Chair French Hill (R-AR) question the SEC about a letter from its Investor Advisory Committee ("IAC") stating that "virtually all, if not all, crypto tokens are securities."

In a Letter addressed to SEC Chair Gary Gensler, the legislators questioned whether the IAC ever met to discuss the contents in its letter titled "IAC Views on Crypto Assets," ever solicited feedback from market participants, or voted to approve the letter. To understand the IAC’s decision-making process, the legislators requested that the SEC provide by June 7, 2023:

  • all records regarding (i) any IAC member discussing cryptocurrencies or the letter on cryptocurrency and (ii) voting on drafting of issuing the letter on cryptocurrency or, if there voting was not held, an explanation as to why it did not take place;
  • rationale for each IAC member’s voting decision on whether to issue the letter on cryptocurrency;
  • interactions and communication among IAC members and third parties regarding the letter on cryptocurrency; and
  • communications between IAC members and Mr. Gensler or members of Mr. Gensler’s staff relating to the letter on cryptocurrency.

Primary Sources

  1. Senator Bill Hagerty Press Release: Hagerty, Hill Raise Concerns Over SEC’s Investor Advisory Committee’s Pro-ESG, Anti-Market Agenda To Strictly Regulate Digital Assets
  2. Senator Bill Hagerty and Representative French Hill Letter to Gary Gensler (May 24, 2023)

Tags

Individuals
Gary Gensler
Regulated Entities
Regulatory Agencies
Regulated Products
Digital Assets
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
US Congress