Ahead of a congressional hearing on Tuesday, Republicans on the House Financial Services Committee have criticized Securities and Exchange Commission Chair Gary Gensler for his approach towards crypto companies. In a letter signed by the Republicans on the committee, they argue that national securities exchange regulations are not compatible with digital assets, as cryptocurrencies can be used for non-investment purposes. The letter further states that Gensler’s repeated statements to the industry to “come in and register” are a “willful misrepresentation” of his agency’s frameworks. The Republicans believe that the lack of clarity provided by the SEC as to what digital assets are considered securities limits what a national securities exchange can list.
Gary Gensler is expected to testify before the committee at 10 a.m. ET on Tuesday. A subcommittee will hold a more crypto-specific hearing on Wednesday, discussing stablecoins. Gensler has repeatedly stated that he believes his agency has the authority it needs to oversee crypto and has argued that all crypto exchanges should register with the regulator. He believes that most crypto tokens are securities and that intermediaries, like exchanges, need to register with the regulator. In his prepared remarks published on Monday, Gensler reiterated his view that “crypto investors should benefit from compliance with the same laws that Rayburn and Roosevelt laid out to protect against fraud, manipulation, front-running, wash sales, and other misconduct.”
The Republicans have argued that current national securities exchange regulations are not compatible with digital assets. They believe that cryptocurrencies can be used for non-investment purposes, which makes it difficult to list them on a national securities exchange. The lack of clarity provided by the SEC as to what digital assets are considered securities has also limited what an NSE can list. The Republicans have accused Gary Gensler of misrepresenting his agency’s frameworks by repeatedly asking the industry to “come in and register.”
Gary Gensler has argued that his agency has the authority it needs to oversee crypto and that all crypto exchanges should register with the regulator. He believes that most crypto tokens are securities and that intermediaries, like exchanges, need to register with the regulator. In his prepared remarks published on Monday, Gensler reiterated his view that “crypto investors should benefit from compliance with the same laws that Rayburn and Roosevelt laid out to protect against fraud, manipulation, front-running, wash sales, and other misconduct.”
The congressional hearing on Tuesday will see Gary Gensler testify before the committee. A subcommittee will hold a more crypto-specific hearing on Wednesday, discussing stablecoins. Gensler has been vocal about his belief that his agency has the authority it needs to oversee crypto and has repeatedly stated that all crypto exchanges should register with the regulator. He believes that most crypto tokens are securities and that intermediaries, like exchanges, need to register with the regulator. In his prepared remarks published on Monday, Gensler reiterated his view that “crypto investors should benefit from compliance with the same laws that Rayburn and Roosevelt laid out to protect against fraud, manipulation, front-running, wash sales, and other misconduct.”
The Republicans on the House Financial Services Committee have criticized Gary Gensler’s approach towards crypto companies ahead of a congressional hearing on Tuesday. In a letter signed by the Republicans on the committee, they argue that national securities exchange regulations are not compatible with digital assets, as cryptocurrencies can be used for non-investment purposes. The letter further states that Gensler’s repeated statements to the industry to “come in and register” are a “willful misrepresentation” of his agency’s frameworks. The Republicans believe that the lack of clarity provided by the SEC as to what digital assets are considered securities limits what a national securities exchange can list.
