SEC Chair Gary Gensler Is Firm With His Stance On The Crypto Industry Is A Scam

Key Points:

• SEC Chair Gary Gensler reaffirms his crypto regulation stance.
• He emphasizes concern over crypto industry misconduct.
• House hearing to assess the SEC’s approach to crypto oversight.

In preparation for his appearance before the U.S. House of Representatives Committee on Financial Services on September 27, 2023, Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), is poised to uphold the same stance he recently presented to the Senate Committee on Banking, Housing, and Urban Affairs.

SEC Chair Gary Gensler’s Firm Stand on Crypto Regulation

Gensler remains resolute in his belief that most cryptocurrencies and crypto-related companies fall under the purview of federal securities laws. The forthcoming hearing, titled ‘Oversight of the Securities and Exchange Commission,’ will be live-streamed on September 27, 2023, at 10 AM Eastern Standard Time.

In his earlier statement, SEC Chair Gary Gensler has been vocal about the prevalence of fraud, abuse, and misconduct within the crypto industry, and he continues to stress this point in his latest testimony submitted to the House Committee on Financial Services.

He also referenced the SEC’s rulemaking efforts in his testimony, specifically highlighting a release from April that classified crypto platforms, including DeFi platforms, as part of the exchange definition.

Regarding ongoing litigation like the XRP lawsuit and the Grayscale spot ETF conversion ruling, he refrained from commenting, suggesting that these matters are still under consideration.

House Hearing to Scrutinize SEC’s Crypto Oversight Approach

The Chair of the House Financial Services Committee, Patrick McHenry, is expected to scrutinize SEC Chair Gary Gensler’s approach to crypto regulation during the hearing. McHenry previously accused Gensler of failing to provide clear guidelines on how firms can adhere to federal securities laws.

Despite calls from House Financial Services Committee members to expedite spot ETF applications, Gensler indicated that work on approving spot Bitcoin exchange-traded funds is ongoing within the agency.

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