US Securities and Exchange Commission (SEC) Chairman Gary Gensler will testify to Congress on Thursday at 18:40. The crypto market is focused on the SEC’s statements and stance due to its aggressive approach towards altcoins.
SEC Chairman to Speak
On September 24 and 25, the SEC Chairman will testify before the House Financial Services Committee and the U.S. Senate Banking Committee. Gensler’s comments are eagerly awaited, as his leadership has come under intense scrutiny along both partisan and political lines. Republican commissioners have criticized the SEC’s negative stance against cryptocurrencies for years, which has further solidified Democrats’ anti-crypto stance.
With the upcoming US presidential elections, legislators are expected to press Gensler on crypto regulation and the handling of scams like FTX and Terra. Coinbase’s legal counsel has also received a huge backlash from the public after criticizing the SEC’s “crypto asset security” claims.
Gensler’s Supporters Are Dwindling
Gensler will face tough questions from both parties, according to Ron Hammond, director of government relations at the Blockchain Association, who noted that this session will be different from previous sessions.
“Gensler has fewer allies this time around; many are unhappy with his leadership, especially with the agency’s recent approaches to crypto.” – Ron Hammond
This will be the first time Gensler will testify alongside other SEC commissioners, making the hearings even more important. Democratic leaders are expected to defend their policies, while Republicans are likely to weigh in by questioning the agency’s direction. And as we mentioned above, this could help the Republican commissioners produce good propaganda ahead of the election, as Trump wants the votes of cryptocurrency investors.
SEC’s Crypto Crackdown Draws Backlash
The SEC, led by Gary Gensler, continues to face heavy criticism from the crypto community and legislators, with House Majority Leader Tom Emmer and Financial Services Committee Chairman Patrick McHenry criticizing the agency’s classification of crypto airdrops as securities, in the latest example.
In their letter to Gensler, the legislators stated that airdrops are important for blockchain development and decentralization. This letter, which accused the agency of creating a “hostile regulatory environment,” caused a great stir in the crypto community. The loyalty program example they gave in this letter was a good detail. “No one is claiming that airline miles are securities,” the statement in the style of “nobody is claiming that airline miles are securities,” makes Gensler’s anti-cryptocurrency stance clear, while the criticism coming from Democrats makes him seem isolated.
The timing of the session is also stirring controversy, with the SEC chairman frequently criticized by the courts and Congress for the agency’s aggressive enforcement tactics, and former US President Donald Trump has said he would fire Gensler if he wins the upcoming election.
Gensler’s testimony before Congress could be critical to crypto regulation and future SEC policies, and market players and investors are closely monitoring the results of these hearings.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
