On April 18, SEC Chairman Gary Gensler testified before Congress. The hearing focused on crypto regulation in the United States. Concretely, Gary Gensler had to be accountable for his approach to cryptocurrencies. The Commission Chairman also asked him for clarification on exactly how the SEC differentiates between crypto securities and crypto products. He was even asked about the recent difficulties faced by crypto businesses in accessing financial services.
Crypto Regulation in the United States: Congress demands more clarity from the SEC
In his opening statement, committee chair Patrick McHenry reveals some disturbing statistics. From 2022 until today, the SEC has filed nearly 50 separate enforcement actions against crypto companies. The agency even plans to expand this application through a $78 million funding request.
To bring clarity to crypto regulation in the United States, Gary Gensler needed to answer two fundamental questions:
- Are digital assets offered as part of an investment contract subject to securities laws?
- How could crypto businesses comply with these laws?
At the time of the audience, Gensler said that most crypto assets are securities. According to him, only Bitcoin can be considered a commodity. Asked about Ether’s classification (commodity or title), he answered vaguely: “The clarity is there. The law is clear and explicit”.
SEC openly criticized by Minnesota Rep. Tom Emmer
The answers provided by the SEC Chairman on crypto regulation in the United States hardly satisfied Tom Emmer. “Your regulatory style lacks flexibility and nuance. Therefore, you were an incompetent cop on the spot doing nothing to protect ordinary Americans and pushing American businesses into the hands of the CCP.”did he declare.
The passage of its president before Congress does not bode well for the SEC. Some analysts even go so far as to say that Gary Gensler risks losing his job.
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