Gary Gensler Faces Pressure From McHenry
Today, all eyes are on Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC), as he faces pressure from Rep. Patrick McHenry, the head of the U.S. House Financial Services Committee. McHenry has threatened to subpoena the SEC for documents related to ex-FTX CEO, Sam Bankman-Fried.
McHenry expressed his concerns about Gensler’s approach to rulemaking, lack of a capital formation agenda, and unresponsiveness to Congress during a previous hearing. He also criticized the SEC for not addressing bipartisan concerns and not focusing on capital formation.
McHenry emphasized the need for a thorough economic analysis of proposed rules and accused Gensler of harming the digital asset ecosystem. He also raised concerns about Gensler’s lack of transparency regarding his interactions with FTX and Sam Bankman-Fried.
McHenry made it clear that he does not want to be the first Chairman of the Financial Services Committee to issue a subpoena to the SEC.
SEC Faces Government Shutdown Concerns
During the hearing, McHenry discussed digital assets and oversight, while Maxine Waters, the ranking member, voiced worries about a possible U.S. government shutdown’s impact on the SEC. Gensler stated that if a spending agreement is not reached by Sept. 30, a large portion of the SEC staff would face furloughs.
The hearing also saw four U.S. lawmakers urging Gary Gensler to approve spot Bitcoin ETFs without delay. They argued that there are no valid grounds preventing the SEC from approving its first spot Bitcoin ETF.
Hot Take: Gary Gensler Under Scrutiny for Stifling the Crypto Market
Gary Gensler, Chairman of the SEC, is facing scrutiny and pressure from Rep. Patrick McHenry and other lawmakers over his approach to rulemaking, lack of transparency, and failure to focus on capital formation. The SEC’s regulatory agenda and lack of public input have raised bipartisan concerns. Additionally, concerns have been raised about Gensler’s interactions with FTX and Sam Bankman-Fried.
The hearing also highlighted worries about a possible U.S. government shutdown’s impact on the SEC. However, some lawmakers are pushing for the approval of spot Bitcoin ETFs without delay, arguing that there are no valid reasons for the SEC to deny them.
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