Senate Banking Committee Questions SEC Chairman on Crypto Regulation
The Senate Banking Committee recently grilled SEC Chairman Gary Gensler on various topics, including the commission’s ongoing investigations in the crypto space and Gensler’s stance on regulating cryptocurrencies under securities law.
During the hearing held on Tuesday, September 12, Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), faced questions from the Senate Banking Committee. The committee sought clarity on the SEC’s complex rules changes and how these new regulations would address potential market failures.
A Journalist at Fox Business, Eleanor Terrett, shared key points from the hearing in a post on X (formerly Twitter). According to Terrett, while cryptocurrency was only discussed briefly, the primary focus of the hearing was on the use of Artificial Intelligence. However, committee members did highlight Gensler’s aggressive pursuit of crypto firms and his pace of rule-making.
Republican committee members questioned Gensler on his activities in the crypto industry, expressing concerns about the potential impact of his rule-making on the market. Some felt that Gensler’s regulations were creating a turbulent environment, while others believed he should exert stricter control over the industry.
In response, Gensler defended the SEC’s rule-making pace, stating that it was slower than that of previous Chairs. He cited an example of providing a 70-day timeline for public comments on the commission’s recent securities rule related to climate change.
When questioned about Grayscale’s spot Bitcoin ETFs, Gensler refrained from making definitive statements. However, he emphasized the importance of securities law in regulating digital assets like cryptocurrency and protecting investors from fraud and risks.
Gensler stated in the hearing, “I think at the heart of our securities laws is protecting investors against fraud. They get to decide. They get to take the risk. I’m not negative or minimalist about crypto. I just think it would be best if it’s inside the investor protection regime that Congress laid out.”
SEC Continues Battle with Crypto Industry
The ongoing conflict between the US SEC and the crypto industry has been a prominent topic for years. The regulatory commission has been actively working to assert its authority and establish clear rules and guidelines for the rapidly evolving crypto sector.
In its pursuit to govern the crypto sector, the SEC has filed lawsuits against several crypto firms, including Ripple, Gemini, Binance, and Coinbase.
These actions have led to criticism from industry leaders and political figures supporting the advancement of cryptocurrency. They argue that the SEC’s classification of cryptocurrencies as securities stifles innovation and imposes unnecessary restrictions on digital assets.
Overall, the Senate Banking Committee hearing provided an opportunity to examine the SEC’s approach to regulating the crypto space and highlighted the ongoing battle between the commission and industry participants.
Featured image from Moonstats, chart from Tradingview.com
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