The SEC and its chair, Gary Gensler, are well-known to those involved in the cryptocurrency space. Over time, both have been subject to criticism for their approach to the industry, including their crackdown on it.
During recent testimony, Gary Gensler, the SEC Chair, faced criticism from US Congressmen and committee members for his approach towards the cryptocurrency industry in the US. Congressman Warren Davidson went so far as to present a bill that called for the restructuring of the SEC and the replacement of Gensler.
The SEC Chair has reiterated his stance on cryptocurrency regulation. He also emphasized the importance of crypto platforms complying with regulations as they are considered intermediaries. He has shown no indication of changing his approach to regulation despite criticism from some members of Congress.
Gensler stays strong in his view
During his testimony, despite facing intense questioning about his regulatory actions, Gensler remained steadfast in his approach to cryptocurrency regulation. He stated, “We have a whole field in crypto that understands the law, and if they are providing exchange services, broker-dealer services, clearing services of crypto security tokens, they should come into compliance. They don’t have a choice.”
During his testimony, Gensler emphasized that many cryptocurrency exchanges are non-compliant with regulations and need to come into compliance. However, his statements were met with criticism by Committee Chairman Rep. Patrick McHenry.
McHenry accused the SEC Chair of punishing digital asset firms for alleged non-adherence to the law, adding that some of them were not aware that the regulations would apply to them. Despite this, Gensler maintained that there is a clear regulatory framework in the US.