US Senator Urges Greater Transparency in Crypto Markets

The chair of the U.S. Senate Banking Committee, Sherrod Brown, urged tougher disclosure requirements for companies in the digital-asset industry.

Corresponding letters were sent to U.S. Treasury Secretary Janet Yellen, the head of the SEC Gary Gensler, and the head of the CFTC, Rostin Behnam.

Brown noted significant losses by crypto investors. According to him, in 2022 they lost about $10 billion to fraud and hacking.

“As investors study crypto tokens, they should be able to assess risks, avoid fraud, and understand conflicts of interest. However, the absence of precise, investment-useful information has led to the spread of scams, platforms vulnerable to manipulation, and hacks,” the senator wrote.

In December 2022, Brown stated that the SEC and CFTC should consider a ban on cryptocurrencies, though implementing the initiative may prove difficult.

As reported in September 2023, SEC Chair Gary Gensler confirmed his hardline stance on digital assets, noting their potential harm to the global financial system.