Gensler is driving crypto to Communist China, says Republican congressman
Republican lawmakers on Tuesday criticized US Securities and Exchange Chairman Gary Gensler’s approach to regulating the crypto world.
On a hearing Tuesday Before the GOP-controlled House Financial Services Committee, the top regulator suggested it was difficult to keep up with the fast-moving digital asset industry.
But lawmakers furiously attacked Gensler for not being clearer with the regulations. Rep. Tom Emmer (R-MN) was particularly aggressive, arguing that American tech companies were suffering as a result.
“You’ve been an incompetent cop on the beat,” he said, before claiming that Gensler was pushing American firms into “the hands of the CCP (Chinese Communist Party).”
He added: “During your tenure at the SEC, how many rules has the SEC finalized that actually address the existing regulatory framework and are specific to the digital asset industry so that the crypto market can come into compliance?”
He then cut off the regulator. “The answer is zero,” he said.
Before the hearing, lawmakers drop an open letter criticizes SEC for lack of clear rules for crypto companies.
Following collapse of mega digital asset exchange FTX last year, the SEC has quickly targeted major US crypto brands.
Gensler, who took the job in 2021, claims that most coins and tokens fall under the securities definition, but many argue that the body is overstepping its authority.
In January, that hit Genesis and Gemini with fees for offering unregistered securities. A month later, it fined crypto exchange Kraken $30 million for violating securities laws.
Then, last month, the commission issued a Wells Notice to Coinbase, America’s largest crypto exchange, alleging that it strike products constitute unregistered securities.
And in its last act yesterday, it alleged Seattle-based exchange Bittrex failed to comply with securities laws by failing to register with the financial watchdog in several areas. The body further claimed that major cryptocurrencies Dash and Algorand had characteristics similar to securities.
These actions are making some politicians — especially Republicans — seethe, with some claim that the regulator’s crypto stance will stifle innovation in the US
The regulator responded today by saying it could use more manpower when regulating the crypto industry.
“In terms of digital assets, we can certainly use more resources,” he said. “Definitely there are more things to look at and investigate than we have people on staff to do.”
