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
SEC Chair Gary Gensler | Screenshot from US Senate
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.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
- Empire: Start your morning with the top news and analysis to inform your day in crypto.
- Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
- 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
- Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
- The Drop: For crypto collectors and traders, covering apps, games, memes and more.
