Sen. Brown pushes for ‘consistent, comprehensive’ crypto disclosures in letter

Sherrod Brown does not believe that there are clear enough crypto disclosures to protect Americans

article-image

US Senator Sherrod Brown | lev radin/Shutterstock modified by Blockworks

share

Senator Sherrod Brown, D-OH, is concerned about the “troubling lack of customer-facing” disclosures in crypto. 

The legislator wrote a letter addressed to Treasury Secretary Janet Yellen, Securities and Exchange Commission Chair Gary Gensler, and Commodity Futures Trading Commission Chair Rostin Behnam. 

“I urge you to use existing tools to strengthen transparency and hold bad actors accountable,” he wrote.

Brown hopes that, by addressing the Treasury, CFTC and SEC, the US can “build on our existing disclosure guardrails to effectively target the deficiencies we have observed in digital asset tokens and digital asset platforms.” He’s also requested that the agencies work hand-in-hand with Congress as legislators push crypto-focused legislation forward.

“Some of my colleagues in Congress have proposed merely applying limited disclosure requirements to digital asset tokens. This would be a profound mistake. We cannot water down the high standards that have protected investors and supported businesses for decades,” Brown said.

Brown specifically pushes for “consistent, comprehensive, and accurate disclosures in crypto markets.”

He cites the failures of FTX and Celsius as specific failures, saying that despite the two collapses, “crypto firms have taken no meaningful steps to improve their transparency, leaving customers vulnerable.”

The letter from Brown comes as Congress heads back to Washington to vote on multiple crypto bills. One such bill, the Financial Innovation and Technology for the 21st Century Act, has bipartisan support and seeks to establish joint rulemaking powers between the CFTC and the SEC. 

As Blockworks previously reported, it would also clarify how digital assets are classified, specifically stating that an investment contract does not necessarily make a token a security, with the bill’s co-sponsors publishing a fact sheet that pushes for most tokens to be classified as tokens rather than securities.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. What you can expect: And more! Don’t miss out on the opportunity to be in the room when the future of crypto is decided. Join us and help shape the future of our […]

recent research

Research report - cover graphics-2.jpg

Research

Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as friend.tech which has seen significant traction.

article-image

Blockchain is a “natural fit” in games based on open economies and user-generated content, says Wyatt

article-image

Their current stance is a half-baked attempt that could stifle innovation and burden an emerging industry

article-image

Maker’s DeFi-focused “subDAO” passed a proposal activating a lending market for DAI on the Gnosis Chain

article-image

Certain creditors could be repaid sooner, with one hedge fund exec telling Blockworks it expects a payout by the end of the year

article-image

Busan is South Korea’s second largest city with a population around 3.4 million

article-image

Cyprus granted eToro crypto registration, setting the groundwork for the company to operate crypto services post-MiCa rollout