Gary Gensler Hearing: What You Can Expect
Get ready for the upcoming U.S. House of Representatives Committee on Financial Services hearing on September 27, 2023, where U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler is likely to reiterate his position from the recent Senate Committee hearing. Gensler has been vocal about his concerns regarding fraud, abuse, and misconduct in the crypto industry.
In his testimony submitted before the House Committee on Financial Services, Gensler once again emphasized these concerns. The hearing, titled ‘Oversight of the Securities and Exchange Commission,’ will be livestreamed on September 27, 2023, at 10 AM eastern standard time. Gensler’s stance on crypto regulation remains firm, as he stated in his testimony that “Most crypto tokens are subject to the securities laws.”
During the hearing, Gensler is expected to avoid commenting on ongoing litigations such as the XRP lawsuit and the Grayscale spot ETF conversion ruling. He mentioned that the approval of spot Bitcoin exchange-traded funds (ETFs) is still a work in progress for the SEC.
Past Actions and Scrutiny
The Republicans’ memorandum to the Committee highlighted past actions taken by the SEC, including defining crypto trading platforms and companies involved in custodial activities. These topics are likely to be addressed during the hearing.
Congressman Blaine Luetkemeyer expressed concerns about registered broker dealers with ties to the Chinese Communist Party, such as Prometheum and Webull. Luetkemeyer sent a letter to Gensler and the Financial Industry Regulatory Authority (FINRA) regarding this matter.
It’s worth noting that since May 2023, there has been criticism from lawmakers and the crypto community regarding the SEC’s approval of Prometheum’s application to offer custody of digital assets following FINRA approval.
Timeline for Crypto Regulatory Framework
The members of the House Committee are likely to question Gensler about the timeline for implementing a regulatory framework for the crypto industry in the United States. Recently, a bipartisan coalition of lawmakers urged Gensler to expedite the spot ETF approval process, citing recent court filings such as the Grayscale verdict.
Hot Take: Gensler’s Stance on Crypto Regulation
Gary Gensler’s upcoming hearing is expected to reinforce his concerns about fraud, abuse, and misconduct in the crypto industry. His emphasis on most crypto tokens being subject to securities laws indicates that stricter regulations may be on the horizon. However, Gensler may avoid discussing ongoing litigations and provide limited insight into the SEC’s actions regarding spot Bitcoin ETFs. The hearing will also address past SEC actions and scrutiny of broker dealers with ties to foreign entities like the Chinese Communist Party. The timeline for implementing a comprehensive regulatory framework for cryptocurrencies in the United States will likely be a key topic of discussion.
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