The crypto market braces as the US SEC Chair Gary Gensler confirms testifying before the congress this week. On September 24 and 25, the SEC Chair will testify before the Financial Services Committee and the US Senate Banking Committee. Notably, the crypto community and Capitol Hill are expecting intense scrutiny of the agency’s approach, given its aggressive stance on the digital assets space.
US SEC Chair Gary Gensler To Testify Before Congress
The US SEC Chair confirms testifying before the Congress this week, sparking market speculations. Notably, the testimony comes at a then when his leadership at the SEC is under immense scrutiny both from partisan lines and his political leanings.
In addition, as the US Presidential election approaches, lawmakers are anticipated to press the SEC chair hard on several issues like the crypto regulation approach, and handling of frauds like FTX, Terra, and others. Besides, recently, Coinbase CLO has criticized the SEC’s “crypto asset security” claims, as it faces heavy backlash from the community.
Meanwhile, according to Blockchain Association Government Relations Director Ron Hammond, Gary Gensler will face questions from both parties. However, these hearings would be somewhat different from the previous ones, according to him.
In other words, the differentiating support from the agency is what makes these hearings unique. According to Hammond, Gensler has fewer allies this time, as many have shown dismay with his leadership, especially with the agency’s recent crypto approach.
In addition, this is the first time Genser will be joined by other SEC Commissioners, which marks a rare event in such hearings. While the democratic leaders are likely to defend his policies, the Republicans are expected to counter his views. In other words, the Republicans are expected to put pressure on him questioning the agency’s direction.
SEC Faces Backlash Over Crypto Crackdown
The US SEC, under the leadership of Gary Gensler, has continued to face heavy criticism from the crypto community as we as from lawmakers. For instance, recently, House Majority Whip Tom Emmer and Financial Services Committee Chair Patrick McHenry, have criticized the agency due to their classifications of crypto airdrops as securities.
In a recent letter to the SEC Chair, the lawmakers said that airdrops are important for decentralization and the development of blockchain development. They accused the agency of creating a “hostile regulatory environment”, which has gained notable attention from the crypto community.
The timing of this hearing also fuels discussion. The SEC chair has faced numerous legal setbacks, with courts and Congress questioning the agency’s aggressive enforcement tactics. Besides, the discussions have further mounted as former US President Donald Trump said that he would fire Gary Gensler if he attains a victory in the upcoming US Presidential election.
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