Congressman Compares SEC Chair Gensler to Tonya Harding
During a recent appearance before the House Financial Services Committee, Securities and Exchanges Commission (SEC) Chair Gary Gensler faced criticism from congressmen. One congressman likened Gensler to figure skater Tonya Harding, known for her involvement in an attack on her main rival, Nancy Kerrigan. Another congressman accused Gensler of abusing his power and called for his dismissal.
The criticism stems from the perception that Gensler’s regulatory actions and lawsuits are negatively impacting the crypto industry. One congressman compared Gensler’s approach to “kneecapping” the U.S. capital markets with excessive regulation.
Gensler Testimony Highlights Combative Stance on Crypto
During his testimony, Gensler maintained a combative stance towards the crypto industry. He criticized how cryptocurrency businesses handle customer assets and expressed concern about mixing assets. When asked whether Bitcoin is a security, Gensler ultimately stated that it did not meet the criteria to be considered as such.
Calls for Gensler’s Removal and SEC Restructuring
One congressman expressed hope that the Biden administration would fire Gensler, while acknowledging that this may not be possible. Instead, he proposed the adoption of the SEC Stabilization Act, which would lead to the removal of the SEC Chairperson role.
SEC’s Preparation for Possible Government Shutdown
Gensler also addressed concerns about how the SEC will oversee the crypto industry during a potential government shutdown. He stated that the agency is preparing for this scenario, which could significantly reduce its workforce and impact its ability to review cases and applications.
Uncertainty Surrounding Spot Bitcoin ETFs
Gensler mentioned that the SEC has yet to decide on spot Bitcoin ETFs due to a judge’s ruling that forced the agency to reconsider its position. He emphasized the commission’s respect for the courts and stated that the matter is still under active consideration.
Hot Take: Gensler Faces Criticism for Regulatory Approach
Congressman Barr’s comparison of Gensler to Tonya Harding highlights the growing discontent with Gensler’s regulatory actions within the crypto industry. Critics argue that his approach is stifling innovation and driving companies and capital out of the U.S. market. As calls for his removal and SEC restructuring continue, the industry remains uncertain about the future of regulations and potential impacts on Bitcoin ETF approvals.
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