The lawmakers also mentioned enforcement actions by the SEC against crypto companies.
US lawmakers appointed the chairman of the Securities and Exchange Commission (seconds, Gary Gensler On the hot seat for making rules in haste. For the first time since Republicans took over the House of Representatives in January, Gensler testified before the House Financial Services Committee. The SEC appeared to defend its regulatory agenda on major crypto assets and the pace of rulemaking in specific areas such as climate change risk.
Under Gensler’s administration, the SEC has proposed 46 regulations involving the $100 trillion capital market. In addition to climate change risks, these proposed rules point to market structure and investment advisor conduct. The proposed market overhaul, including tighter regulators for crypto companies, was the focus of lawmakers slamming the SEC chief.
SEC chairman under fire from US lawmakers over crypto lawsuits and crowded regulations
The House expressed its disagreement with the SEC’s lawsuit against crypto firms. Since everything happened during Gensler’s tenure, US lawmakers also claimed that the SEC chairman refused to comply with Congress’s request for the documents. He said the current SEC boss has proposed X2 more rules than his predecessors. Republican Congressman Patrick McHenry, chairman of the House Financial Services Committee, said:
“It raises serious concerns that the rulemaking process is being rushed, undermining the quality of our securities laws and risking negative unintended consequences.”
In his defense, Gensler said that US capital markets are among the safest and strongest globally due to regulations. Therefore, there is a need for updated rules and regulations as investors become risk averse with new innovations. McHensey, on the other hand, told Gensler that his approach was “to drive innovation overseas and jeopardize American competitiveness”.
House Majority Whip Tom Emmer Claimed Gensler was pushing American firms into the hands of the Chinese Communist Party (CCP), America’s top opponent. He added that there is a hostile environment for crypto, of which the SEC chairman is a part.
Gensler said that “the SEC is the watchdog for your constituents”.
In addition, the lawmakers also mentioned enforcement actions by the SEC against crypto companies.
“You are punishing digital asset firms for allegedly not complying with the law when they do not know it will apply to them. This is absurd…there is a lack of clarity in the marketplace. Can you at least Can less agree with that?” The Republican congressman noted.
The committee chairman accused the commission of launching more than 50 enforcement actions against crypto firms during Gensler’s tenure. In his statement, he clarified that the financial watchdog has no responsibility to prosecute establishments for failing to register with the commission. According to McHenry, the law is unclear whether certain digital assets are securities or commodities. Meanwhile, the Commodity Futures Trading Commission (CFTC) and the SEC have often grappled with over the distribution of rights over certain cryptocurrencies.
Ibukun is a crypto/finance writer interested in delivering relevant information using non-complicated words to reach all types of audiences. Apart from writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos where she lives.
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