U.S. Senator Elizabeth Warren wants Securities and Exchange Commission chairman Gary Gensler to speak out on regulating crypto exchanges – a possible prelude to more concrete action on that front in Congress.

In the letter, Warren – no stranger to criticism of the crypto ecosystem – said her goal was to “seek information on the authority of the Security and Exchange Commission (SEC) to properly regulate the exchange of cryptocurrencies and to see if Congress must act to ensure this ”. the SEC has the appropriate authority to fill existing regulatory loopholes that make investors and consumers vulnerable to danger in this very opaque and volatile market. “

In summary, Warren would like Gensler to clarify, among other things, whether the SEC needs more powers to regulate crypto exchanges. This is a remarkable area of ​​investigation as Gensler himself told Congress in May that he wanted to work with Congress on this particular issue.

“I think that working with Congress, and I think only Congress can really deal with it, it would be good to consider whether the crypto exchanges are better protected,” he said at the time. “And I think if that should be the case, because at the moment the exchanges that trade these crypto assets have no regulatory framework either with the SEC or with our site agency [CFTC], that could create more trust. “

Warren’s letter also looked at decentralized funding – an issue that other federal officials, including SEC Commissioner Hester Peirce and CFTC Commissioner Dan Berkovitz, have spoken about publicly. A month ago, Berkovitz cited DeFi as a challenge for market regulators like the CFTC, noting that “federal regulators should become familiar with this new technology and its potential applications and be prepared to protect the public from abuse.”

“Not only do I think unlicensed DeFi derivative instruments markets are a bad idea, I also don’t see how they are legal under the CEA,” he noted in particular.

Warren asked Gensler in her letter if he would agree with the latter point and asked, “Do decentralized platforms within the SEC jurisdiction raise similar investor and consumer protection concerns?