The SEC Highlights Regulatory Tension In The Cryptocurrency Space

The dispute between Binance and the SEC has highlighted the need for clear rules on how cryptocurrency exchanges should be regulated.

The spat between the SEC and Binance illustrates that regulators are still grappling with how to make sense of a new asset class, which is growing rapidly but has no formal rules or oversight. It also shows that even after the emergence of bitcoin futures, there's still no clear way to trade cryptocurrencies on a regulated exchange.

In a letter sent Monday to Congress, Lummis said he wants Congress to create a comprehensive regulatory framework for digital assets like bitcoin. The issue is important because the SEC has been slow to act on its own authority and because it could have implications for other emerging technologies such as artificial intelligence.

The senator added that he would like to see Congress codify some regulations ahead of an official rulemaking process within the SEC.