Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), has outlined why the securities regulator is taking a litigation-heavy approach to regulating the crypto business.
The SEC chairman stressed that enforcement measures against cryptocurrency firms are not motivated by a political goal, emphasising that he is protecting the American people. “This is a field where the American public is at risk and being harmed every day on these platforms that are commingling and often trading against their customers,” said him.
Gensler Explains Why the SEC Is Focused on Litigation in Crypto Regulation
Gary Gensler, chairman of the Securities and Exchange Commission (SEC), testified before the House Financial Services Committee on Wednesday. Several members of Congress highlighted concerns about cryptocurrency and the regulation of crypto tokens during the session.
“Regarding cryptocurrencies…,” Congressman John Rose (R-TN) asked Gensler. I’m curious why you’ve adopted a litigation-heavy approach despite the fact that neither you nor any of your senior personnel — not your Chief of personnel, nor your Policy Director, nor even your General Counsel — are litigators. Why have you chosen such a litigious approach to dealing with the cryptocurrency market?” Gensler responded:
‘I’m Confident You Are Not an Objective Regulator.’
Rep. Tom Emmer (R-NC), noting Gensler’s previous employment at a bank, questioned Gensler, “Can you assure this committee that your style of regulation by harassment towards digital asset innovation is for the benefit of every American and not driven by your desires to protect industry incumbents?” The chairman of the Securities and Exchange Commission responded: “This is a field that’s rife with fraud and manipulation and I’m looking out for the American investors who’ve been hurt by crypto.”
Congressman Emmer interrupted Gensler before he could continue his response, emphasising:
Despite your years of bluster, Mr. Gensler, I am now convinced that you are not an unbiased regulator. Instead, it’s evident that you’re attempting to solidify your own authority, even if it means crushing chances for ordinary Americans and, frankly, the country’s financial future.
Crypto Tokens Are Not Currency, According to Gensler
Rep. Al Green (D-TX) expressed worry that “crypto amounts to a giant Ponzi scheme.” When comparing cryptocurrency to the US dollar, Gensler emphasised:
Crypto tokens are something entirely new. They are not a form of currency.
“They do not perform the three functions of a currency, which are to serve as a store of value, a unit of account, and a medium of exchange.” They might one day, but not in 2023,” Gensler observed.
It would keep the current commissioners, but add a sixth, limiting the number of commissioners from any one political party to three.” The legislator came at the following conclusion:
Gary Gensler on SEC’s Litigation – Focused on crypto regulation,Gary Gensler on SEC’s Litigation – Focused on crypto regulation