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SEC’s Gensler Prepares For Senate Testimony: Crypto Policy Stance Stays The Same

SEC’s Gensler Prepares For Senate Testimony: Crypto Policy Stance Stays The Same


SEC Chairman Gary Gensler is preparing for a Senate testimony on Tuesday. His written remarks indicate that the regulator's stance on cryptocurrencies remains tough.

He compared cryptocurrencies to securities once again in his testimony and highlighted the industry's massive non-compliance with securities laws has led to a multitude of problems. He believes that there is no need to change anything in the securities law to regulate cryptocurrencies: the majority of cryptocurrencies on the market are securities, according to the Howey test. He once clarified in an interview for Intelligencer that all cryptocurrencies except for Bitcoin are securities. It is notable that he declines to comment on whether he thinks Ethereum is a security.

The issue of cryptocurrency regulation is a complex topic for opposing sides. However, both cryptocurrency advocates and some political elites agree that the regulatory regime created through enforcement actions hinders investors.

In April, Republican lawmakers accused the regulator of incompetence when it comes to cryptocurrencies in a formal letter to the SEC. In July, that view was echoed by Ritchie Torres (D-NY), who said the SEC was accusing cryptocurrency companies of violating rules without really understanding them.

Ripple Labs' partial victory over the SEC in court only confirms this opinion. However, Gensler continues to stick to his "all for the protection of investors" policy.

The uncertainty of cryptocurrency regulation is one of the reasons why crypto enthusiasts will be keeping a close eye on Gensler's comments in the Senate. The rest of 'em will be interested to see how Gensler will report back to the bosses on the SEC's recent decisions, including the outcome of the Ripple and Grayscale proceedings.

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The materials found on the Cryptonica website shall not be taken as individual investment recommendations. The financial instruments or operations mentioned therein may not align with your investment profile or objectives. We assume no responsibility for any missing facts or inaccurate information in the texts. Cryptocurrencies are financial assets with high risk and volatility. Therefore, it is crucial that you conduct your own research on financial instruments and make independent decisions. Before engaging in any actions related to cryptocurrency, you shall study, understand, and comply with the laws applicable in your region and country.

Gary Gensler

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