Patrick McHenry, Chairman of the House Financial Services Committee, and Bill Huizenga, Chairman of the Subcommittee on Oversight and Investigations, demanded in a joint letter that the SEC turn over requested internal documents. The duo has accused the SEC of failing to deliver on their requests, which span from corporate climate disclosures to Gensler’s dealings with the now-disgraced crypto mogul, Sam Bankman-Fried.
Gensler is driving Capital out of the US
The Republicans have also criticized Gensler’s ventures into crypto regulation. They believe that his rigorous enforcement measures against companies such as Ripple Labs and Coinbase are pushing digital asset innovation overseas. Furthermore, they argue that Gensler’s focus on minor enforcement actions allowed Bankman-Fried’s alleged fraud to slip under the radar until his FTX exchange collapsed, leading to alleged looting of billions from customer accounts.
Gensler Under Fire for Inadequate Responses
Gensler’s inadequate responses to the Republicans’ requests have incensed them.
As the letter states, “It is inconceivable to us that a nearly 5,000-person agency with nearly 150 attorneys in its General Counsel’s office and more than 200 employees in the IT department is struggling to process three requests from Congress in a timely and responsive manner.”
Gensler’s climate proposal, scheduled to be voted on by the full commission before year’s end, is among the most controversial SEC edicts in recent memory. The proposal mandates public companies to disclose their carbon footprint, which the Republicans argue is an overreach by the SEC and creates a burdensome and costly regulatory obligation.
The Future of Digital Assets: A Bipartisan Effort?
On the other hand, the House Financial Services Subcommittee on Digital Assets, Financial Technology & Inclusion, chaired by French Hill, is holding a joint hearing on “The Future of Digital Assets: Measuring the Regulatory Gaps in the Digital Asset Markets.” They aim to create a workable framework for digital asset issuers and intermediaries to be regulated by the SEC or CFTC, suggesting the possibility of bipartisan efforts to regulate the digital asset ecosystem.
“We are tired of the bureaucratic stonewalling from the SEC. During a recent Committee hearing, Chairman Gensler told me he respects the role of Congressional oversight. If Chairman Gensler won’t live up to his own standard and answer our questions, we’ll make sure someone from his staff does his job for him.” Bill Huizenga
Who will win the ultimate tug-of-war over cryptocurrency regulation? Only time will tell. Stay tuned for the next episode of this epic battle!
