By George Ward
As one of the most influential voices in finance and regulation, SEC Chairman Gary Gensler’s upcoming testimony before the House Financial Services Committee will undoubtedly attract close watch by industry observers. The hearing will focus on Gensler’s plans to regulate cryptocurrencies.
This topic has been at the forefront of the SEC’s agenda since Gensler took office in April 2021.
House Financial Services Committee to Grill SEC Chief
In a recent interview, the chairman of the Financial Services Committee, Representative Patrick McHenry, affirmed that the SEC head would face inquiry about the agency’s stance regarding the crypto realm next month.
The House Financial Services Committee controls the entire financial services landscape of the United States, including banking, investments, and digital resources. In his interview, McHenry stated that it would be the first time the SEC was subject to oversight by the committee.
He also noted that the committee would have extensive oversight of the SEC’s responsibilities and take a severe approach to creating a regulatory framework for digital assets. The SEC administrator’s strategy towards digital currencies has recently created a stir, with several Democrats expressing their worry about it.
Meanwhile, Dennis Porter, Satoshi Action Fund’s co-founder, declared that a significant number of Democrats who are in favor of cryptocurrency and Bitcoin (BTC) had stepped forward to disagree with the party’s outlook.
SEC And CFTC Continue Crack Down On Crypto Firms
Since the beginning of this year, U.S. regulators have adopted a strict attitude toward cryptocurrency. The SEC delivered Wells notices to multiple crypto firms, including Coinbase.
However, Coinbase’s Chief Legal Officer Paul Grewal stated that they asked the SEC to identify which assets on their platforms they assume are securities, and the SEC refused to answer. Similarly, the Commodity Futures Trading Commission (CFTC) has initiated legal action against Binance.
The CFTC asserted that Binance had disregarded its regulatory duties by not formally registering with the agency. The crypto exchange has been under CFTC’s probe for the last two years.
Nevertheless, crypto players have consistently argued that Congress, not individual federal agencies, should determine laws and regulations concerning the sector. It will be interesting to see how Gensler responds to questions about the SEC’s approach to crypto regulation and whether he can clarify the agency’s plans for the future.
Investors and industry participants will be interested in Gensler’s responses during the hearing.