US SEC Chair Gary Gensler will be grilled for his "flagrant disregard for the law" and crypto asset oversight
Representative Patrick McHenry, chairman of the Financial Services Committee, announced yesterday that Gensler will face the House Financial Services Committee on 18 April 2023.
"This will be our first oversight hearing of the SEC, this will be about his rulemaking and his approach to digital assets," McHenry said in an interview. "In terms of policy, it will be a serious approach to us laying down a regulatory sphere for digital assets."
US House Committee on Financial Services Republicans shared footage of McHenry's announcement on Twitter with the caption, "Republicans will hold @GaryGensler accountable for his flagrant disregard for the law, jurisdiction, and the APA."
Gensler vs. crypto
Gensler and the SEC have strengthened their regulatory grip on crypto assets, but their approach hasn't been welcomed.
Analysts downgraded the company's rating and reducing its price target after the SEC sent the exchange a Wells Notice last week. Multiple Coinbase products are coming under regulatory scrutiny, including an unidentified portion of listed digital assets, Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
Read more: Coinbase Shares Fall as Exchange Prepares for Battle With SEC
Read more: SushiSwap Served With SEC Subpoena
Gensler himself has repeatedly stated that crypto token products are securities and thus crypto trading platforms must register with the SEC.
CFTC vs. SEC
The SEC's crypto stance has also proved unpopular among other US regulators.
Earlier this month, the Commodity Futures Trading Commission (CFTC) stated that Ether and stablecoins should be treated as commodities; an opposing view to Gensler's.
Read more: Sorry SEC, Stablecoins Are Commodities According to CFTC
“Notwithstanding a regulatory framework around stablecoins, they’re going to be commodities in my view,” Behnam said. “It was clear to our enforcement team and the commission that Tether, a stablecoin, was a commodity."
Read more: XRP Hits Five-Month High Thanks to CFTC's Binance Lawsuit
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