U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler asked Senator Elizabeth Warren to help increase regulators' power in the crypto space.
What Happened: In a letter sent on August 5, Gensler wrote that regulators need more resources to protect investors, such as the authority to write rules for exchanges, including decentralized finance (DeFi) platforms and decentralized exchanges (DEXs).
Gensler added that there's a need for "additional authorities to prevent transactions, products and platforms from falling between regulatory cracks."
The SEC Commissioner is particularly worried about stablecoins, since their use may purportedly allow "to sidestep a host of public policy goals connected to our traditional banking and financial system," including "anti-money laundering, tax compliance, sanctions and the like."
He believes the legislative priority should rely on crypto trading, lending, and DeFi platforms. For this reason, he said that regulators "would benefit from additional authority."
The letter follows a note sent by Warren to Gensler, asking about the risks posed by cryptocurrency exchanges in early July.
Read next: SEC Brings $10M Lawsuit Against Crypto Exchange Poloniex: What Investors Should Know
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