US Congressman Calls Out SEC Chair for Lack of Transparency
US Congressman Patrick McHenry has criticized SEC Chair Gary Gensler for his alleged lack of transparency during his testimony before the US House Financial Oversight Committee. McHenry expressed dissatisfaction with Gensler’s refusal to share information about his interactions with cryptocurrency exchange FTX and its founder, Sam Bankman-Fried. McHenry labeled Gensler’s “lack of responsiveness” as unacceptable and highlighted the SEC’s enforcement actions within the digital asset industry.
SEC’s Oversight Failures and Congress’ Demands for Clarity
McHenry pointed out that despite the SEC’s vigilance, it overlooked one of the largest financial crimes in US history in the cryptocurrency industry. This has led Congress to seek clarity and answers regarding the SEC’s operations and decisions.
McHenry Challenges Gensler’s Silence on FTX Dealings
McHenry accused Gensler of refusing to be transparent with Congress regarding his interaction with FTX and Sam Bankman-Fried. He mentioned that the committee had requested documents from the SEC in February but had not received any non-public documents seven months later.
Senators Call for Pause in Crypto Rulemaking
McHenry warned that the committee’s patience is wearing thin and called for a path forward, urging the SEC to respond more to requests. He threatened to issue a congressional subpoena if the situation doesn’t improve. Additionally, a group of US senators has urged Gensler to halt rulemaking actions in the crypto industry.
Ripple CTO Speculates on Gensler’s Stance
Ripple CTO Stuart Alderoty speculated that Gensler will maintain his stance on XRP’s legal compliance under securities laws during a recent hearing. This, along with the senators’ request to pause rulemaking actions, has raised concerns about the potential impact on the crypto industry.
Hot Take: SEC Chair Gensler Faces Criticism for Lack of Transparency
US Congressman Patrick McHenry has called out SEC Chair Gary Gensler for his lack of transparency regarding his interactions with FTX and Sam Bankman-Fried. McHenry emphasized the importance of transparency and compliance from regulators, warning that the committee’s patience is wearing thin. The ongoing tension between the SEC and Congress raises concerns about the future of crypto regulation in the US. As Gensler faces mounting pressure, the crypto industry eagerly awaits clarity and answers from the SEC.
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