Gensler’s Strategy for Regulating Crypto
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, testified before the House Financial Services Committee and discussed the regulation of cryptocurrencies. When asked about the SEC’s litigation-heavy strategy, Gensler explained that the crypto industry is filled with fraudsters and non-compliant parties, putting the American public at risk. He emphasized that the enforcement actions taken by the SEC are meant to protect investors.
Rulemaking and Political Agenda
Gensler clarified that in addition to litigation, the SEC has also implemented rulemaking related to broker-dealers, exchanges, and custody roles. However, when accused of having a political agenda, he vehemently denied it, stating that his only concern is safeguarding the American public.
Accusations of Bias
Another congressman accused Gensler of being biased against digital asset innovation and protecting industry incumbents. Gensler refuted these claims, emphasizing his commitment to protecting American investors who have been victims of fraud and manipulation in the crypto industry.
Crypto Tokens as Currency
During the hearing, concerns were raised about crypto being perceived as a Ponzi scheme. Gensler clarified that crypto tokens are not currency as they do not fulfill the functions of a store of value, unit of account, or medium of exchange. He stated that they may evolve in the future but are not currently considered currency.
Call for Gensler’s Removal
Congressman Warren Davidson criticized the SEC and proposed a bill to remove Gensler from his role as chairman. The bill aims to add a sixth commissioner to ensure a balanced representation from political parties. Davidson expressed his desire for the Biden administration to dismiss Gensler from his position.
Hot Take: SEC Chairman Gensler Stresses Protection of American Public
SEC Chairman Gary Gensler testified before the House Financial Services Committee, defending the SEC’s litigation-heavy strategy in regulating the crypto industry. He emphasized the need to protect the American public from fraudsters and non-compliant parties operating in the crypto space. Gensler denied any political agenda and asserted that his focus is solely on safeguarding investors. Additionally, he clarified that crypto tokens are not considered currency as they do not fulfill the functions of traditional currencies. The hearing also saw calls for Gensler’s removal from his position as chairman, citing concerns about bias and stifling innovation.
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