Revolutionary Crypto Rules Or Devastating Blow? SEC Chief Gensler To Testify Before Congress

Zinger Key Points
  • The SEC chief is set to face questions on rule-making for digital assets.
  • Pro-crypto Democrats have expressed disapproval of its party's anti-crypto attitude.

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler is set to appear before the House Financial Services Committee on April 18 to face questions regarding his approach to rule-making and digital assets.

The SEC chairman’s stance on cryptocurrencies has been a topic of discussion in recent years.

Chairman of the Financial Services Committee, Rep. Patrick McHenry (R-N.C.), confirmed Gensler’s appearance in a recent interview, stating that this will be the first oversight hearing with the SEC.

McHenry also noted the committee holds significant control over the SEC and will be discussing “laying down a regulatory sphere for digital assets.”

Many Democratic party members have expressed their disapproval of the same, which may prove to be a hindrance to the party’s 2024 election campaign.

However, several pro-crypto and pro-Bitcoin BTC/USD Democrats are gathering to express their criticism of the party’s policy, according to Dennis Porter, the co-founder of the Satoshi Action Fund.

Also Read: Mike Novogratz Says Biden Administration Is 'Wrong' As Bitcoin, Ethereum Emerge Best-Performing Assets Of 2023

In the first quarter of 2023, U.S. regulators adopted a strict stance on cryptocurrencies.

The SEC sent Wells Notices to several cryptocurrency firms, including the popular exchange, Coinbase Global Inc COIN, while a fresh complaint against Binance has been submitted by the Commodities Futures Trading Commission (CFTC).

The crypto community emphasized that Congress, not individual agencies, will make the decisions about regulation.

While Europe and many other regions in the world are moving ahead with cryptocurrency regulations, the U.S. has lagged behind on that front.

The SEC vs. Ripple lawsuit, which has been ongoing since 2020, is expected to lay the foundation of what constitutes security in the U.S., but there is no clear path laid out by the current regulators.

Read Next: Elizabeth Warren Once Called For 'Aggressive Enforcement' Against Crypto Industry: 'Appears To Be Smoke And Mirrors'

Photo: Courtesy Third Way Think Tank via Flickr Creative Commons

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Posted In: CryptocurrencyGovernmentNewsPoliticsSECMarketsGeneralBinanceCFTCDigital AssetsGary Genslerhouse financial services committeePatrick McHenryregulationRipple lawsuitWells notices
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