SEC Boss Gary Gensler Completes Senate Hearing: Here’s What Crypto Investors Should Know
September 13 2023 - 8:00AM
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SEC Chairman Gary Gensler is on the hot seat as the Senate Banking
Committee demands answers and clarity on a range of topics
including the commission’s ongoing investigations in the crypto
space and Gensler’s belief that cryptocurrencies should be
regulated under the securities law. Senate Banking Committee
Grills Gensler Gary Gensler, Chairman of the United States
Securities and Exchange Commission (SEC) was cross-examined by the
Senate Banking Committee on Tuesday, September 12. The committee
probed the SEC boss for clarification on the commission’s complex
rules changes and the ability of these new regulations to address
future market failures. Related Reading: Why The
NASDAQ’s Latest Move Is Important For Fund Managers Filing Ethereum
ETFs Following the hearing, a Journalist at Fox Business, Eleanor
Terrett, revealed in an X (formerly Twitter) post a list of key
points from the hearing between SEC Chair Gary Gensler and the
Senate Banking Committee. She stated that a variety of topics
were discussed in the hearing, with Artificial Intelligence being
the primary focus, while cryptocurrency was discussed on a small
scale. Nevertheless, Terrett explained that the members of the
committee brought to light Gensler’s rule-making pace, and his
aggressive pursuit of crypto firms in the industry.
Republican members of the committee mostly questioned Gensler on
his activities in the crypto industry. Some members felt he was
encouraging a turbulent environment in the crypto space by enacting
new rules and regulations at an excessively fast pace. However,
other members felt he was not putting enough effort into
positioning the crypto industry under the commission’s heel.
Gensler responded by saying that the US SEC was enacting rules and
regulations at a determined pace much slower than the committee’s
previous Chairs. As an example, Gensler explained that he provided
the public with a sufficient timeline of 70 days to make comments
on the commission’s most recent securities rule which involved
climate change. When asked about approvals for Grayscale’s
spot Bitcoin ETFs, Gensler avoided making any solid statements.
However, he emphasized the importance of securities law in
regulating digital assets like cryptocurrency and protecting
investors in the crypto industry from fraud and risks. “I
think at the heart of our securities laws is protecting investors
against fraud. They get to decide. They get to take the risk. I’m
not negative or minimalist about crypto. I just think it would be
best if it’s inside the investor protection regime that Congress
laid out,” Gensler stated in the hearing. Total market cap
recovers to $1.019 trillion | Source: Crypto Total Market Cap on
Tradingview.com The SEC’s Ongoing Battle With Crypto Industry The
ongoing battle with the US SEC and the crypto industry has been
dominating headlines for years now. The regulatory commission has
been striving to assert its authority and establish clear rules and
guidelines for the rapidly evolving crypto sector. Related
Reading: Analyst Points Out Why End Of 2023 Will Not Be Great For
XRP Price In its attempt to govern the crypto sector, the US SEC
has filed multiple lawsuits against different crypto firms
including Ripple, Gemini, and crypto exchanges like Binance and
Coinbase. In light of this, many crypto industry leaders and
political leaders supporting the advancement of cryptocurrency
argue that the SEC’s classification of cryptocurrencies as
securities stifles innovation and imposes unnecessary restrictions
on digital assets. Featured image from Moonstats, chart from
Tradingview.com
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