All five SEC commissioners, including crypto-skeptic chair Gary Gensler, testified at a full congressional hearing where the agency was criticized for its “scorched earth” regulatory approach.
Gary Gensler, chair of the U.S. Securities and Exchange Commission, along with commissioners Hester Peirce, Mark Uyeda, Caroline Crenshaw, and Jamie Lizárraga, appeared before members of the U.S. House Financial Services Committee to discuss crypto oversight for the first time since 2019.
Lawmakers criticized SEC Chair Gary Gensler and the watchdog over its aggressive enforcement action strategy toward digital assets. For years, industry proponents and some politicians have argued that Gensler and the SEC have burdened the nascent industry with policy uncertainty.
Gensler, who often asserts that most cryptocurrencies are securities, and regular dissenter Commissioner Peirce, were specifically questioned about the SEC’s unclear language regarding blockchain-based virtual currencies like Ethereum (ETH).
Peirce stated that the agency has failed to provide regulatory clarity for crypto despite possessing the tools to dispel confusion. She argued that using ambiguous language, such as suggesting that crypto tokens are inherently securities, has worsened the agency’s ability to oversee markets.
Representative French Hill supported Peirce’s views, adding that the SEC has been “frontrunning Congress on crypto regulation” and has attempted to seize crypto oversight through broad enforcement actions. Hill and Peirce emphasized that statutory assistance from Congress could establish a comprehensive regulatory framework, especially since the “rogue SEC” has avoided rulemaking.
Rep. Tom Emmer particularly blasted chair Gensler for fabricating terms like “crypto asset security.” The agency recently backtracked on this supposed shorthand and pledged to avoid using the phrase in future litigations.
Ranking member Maxine Waters also urged Chair Patrick McHenry to continue negotiations on stablecoin policies before the e
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Author: Naga Avan-Nomayo
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