SEC Chair Faces Tough Questions on Crypto Oversight

July 21, 2023

Senators, including Sens. Romney and Reed, propose a bill to enforce anti-money laundering (AML) and sanctions rules for crypto exchanges, and they express their support on Twitter. Meanwhile, House Democrats urge the GOP to amend the stablecoin bill before the upcoming vote, specifically addressing state-based crypto regulation and reserve requirements. During a hearing, the SEC Chair, Gary Gensler, faces tough questions from Senators regarding the agency's authority and competence in regulating the crypto industry.

The BSV Blockchain Gazette is presented by Bryan Daugherty, Global Policy Director for BSV Blockchain Association, featuring:

• Sens. Jack Reed (D-RI), Mike Rounds (R-SD), Mark Warner (D-VA), and Mitt Romney (R-UT)
• House Financial Services Democrats, including Reps. Wiley Nickel (D-NC), Jim Himes (D-CT), Brittany Pettersen (D-CO), Gregory Meeks (D-NY), and Ritchie Torres (D-NY)
• SEC Chair Gary Gensler
• Sen. Dick Durbin (D-IL)

Senators Introduce Bill Requiring Crypto Exchanges to Comply with AML and Sanctions Rules

Sens. Jack Reed (D-RI), Mike Rounds (R-SD), Mark Warner (D-VA), and Mitt Romney (R-UT), unveiled a bill that would require decentralized crypto exchanges and crypto kiosks to comply with anti-money laundering and economic sanctions rules. Sens. Romney and Reed posted tweets about the proposed bill.

House Democrats Urge Revision of Stablecoin Bill Ahead of Vote

House Financial Services Democrats, including Reps. Wiley Nickel (D-NC), Jim Himes (D-CT), Brittany Pettersen (D-CO), Gregory Meeks (D-NY), and Ritchie Torres (D-NY), are pushing Republicans to revise their stablecoin bill ahead of a vote next Wednesday. The changes would cover areas including the legislation’s treatment of state-based crypto regulation and reserve requirements.

SEC Chair Grilled by Senators on Authority and Oversight of Crypto Industry

In a hearing on Wednesday, Senators questioned SEC Chair Gary Gensler on his agency’s authority and competence in curbing fraud and regulating the crypto industry. Chair Gensler stated that the CFTC’s authority over the crypto industry is “frankly not as robust” as his agency’s own, and he called for more money to oversee a space he said was “rife with fraud.” Sen. Dick Durbin (D-IL) also tweeted about the hearing, emphasizing the issue of fraud in the crypto industry.