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.
🚨NEW: Ahead of tomorrow’s @BankingGOP hearing, @GaryGensler released the testimony he will give to the committee. Here’s what he will have to say about crypto tomorrow 👇 pic.twitter.com/jSGwaWvOi0
— Taylor Barr (@taylorjbarr) September 11, 2023
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.
Crypto regulation by enforcement had a dreadful day in court.
— Rep. Ritchie Torres (@RepRitchie) July 18, 2023
In light of the SDNY’s landmark decision in the Ripple case, @SECGov must reassess its reckless regulatory assault on the crypto industry.
My letter to Chair Gensler: pic.twitter.com/Mrk63N4KhH
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.
