Senate probes Gensler’s intensive regulatory focus on cryptocurrencies

Senators mostly focused their questions on the SEC’s approach to regulating publicly-registered companies and his so-called aggressive approach to rulemaking during Tuesday’s hearing

article-image

SEC Chair Gary Gensler | Screenshot from US Senate

share

During testimony before the Senate Banking Committee Tuesday, US Securities and Exchange Commission Chair Gary Gensler defended his agency’s agenda, which has included issuing more than 24 crypto-related enforcement actions against businesses and individuals in the blockchain space. 

“Given this industry’s wide-ranging noncompliance with the securities laws, it’s not surprising that we’ve seen many problems in these markets,” Gensler said Tuesday in his prepared remarks. “Thus, we have brought a number of enforcement actions — some settled, and some in litigation — to hold wrongdoers accountable and promote investor protection.” 

Senators mostly questioned Gensler on the SEC‘s approach to regulating publicly-registered companies and his so-called aggressive approach to rulemaking.  

“The vast majority of the agency’s rulemaking agenda has been a voluntary undertaking. Chair Gensler you are not an elected official that is beholden to your constituents, you are an unelected bureaucrat that has taken it upon himself to reshape American financial markets,” Sen. Steve Daines, R-Mont., said. 

“We do all that we do based on Congress’ authority,” Gensler responded. 

Sen. Bill Hagerty, R-Tenn., asked what the SEC would need to see in order to approve a spot bitcoin ETF, an issue the industry has become increasingly frustrated with. 

“We’re still reviewing that decision,” Gensler said about a federal court granting Grayscale’s petition for review of the SEC’s denial of its bitcoin ETF. “I’m looking forward to staff recommendations.” 

Asset manager Franklin Templeton filed for a spot bitcoin ETF ahead of Tuesday’s hearing, making it the fifth traditional finance manager to enter the race. 

Gensler noted that the agency needs more funding and staff in order to effectively regulate securities markets and protect investors, a point of contention Commodity Futures Trading Commission Rostin Behnam has also brought up with Congress

Without more funding, “we would not be able to appropriately and impactfully implement the [legislation],” Behnam told the House in June.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.

article-image

Also, a look into how the highly-debated SAB 121 could end up shaking out for crypto custodians

article-image

Vance, an Ohio Republican, is largely seen as crypto-friendly

article-image

Plus, all the world is green as prices across the crypto space rally, with solana reaching a nearly two-week high

article-image

Investors add to crypto positions after “turnaround in sentiment due to lower-than-expected CPI,” CoinShares research head says

article-image

Plus, Ethereum is in the midst of a vibecession

article-image

Also, former Valkyrie CEO lands new leadership role at Canadian investment firm Cypherpunk Holdings