SEC Chair Gary Gensler and all five commissioners appeared before the U.S. House Financial Services Committee to discuss crypto oversight. This event marked the first discussion since 2019.
Congress Criticizes SEC
Lawmakers criticized SEC Chair Gary Gensler and the agency for their aggressive enforcement actions towards digital assets. For years, industry proponents and some politicians have accused Gensler and the SEC of creating policy uncertainty. Committee Chairman Patrick McHenry stated: "Gensler's legacy will be defined by turning the SEC into a rogue agency."
Debates on Terminology and Policy
Gensler and Commissioner Peirce were specifically questioned about the SEC’s unclear language regarding blockchain-based virtual currencies like Ethereum. Peirce stated that the agency has failed to provide regulatory clarity for crypto, despite having the tools to do so. Representative French Hill supported her view, adding that the SEC overstepped its bounds by trying to seize crypto oversight through broad actions.
Future Steps and Negotiations
Ahead of the meeting, the Financial Services Committee led by Republicans demanded the revocation of Staff Bulletin SAB 121 from SEC and other financial organizations. Republican politicians also questioned Gensler about potential political biases in staff recruitment and promotions. Gensler is scheduled to testify again before the Senate Banking Committee, but the date is not yet set.
The oversight hearing highlighted the ongoing search for clear and structured cryptocurrency regulation by lawmakers and industry participants. Further discussions are expected to lead to more transparent rules and standards for digital assets.
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