Genser Under Fire: Key Highlights from Congressional Crypto Hearing

SEC Chair Gary Gensler came under fire during his testimony before the House Financial Services Committee earlier this Tuesday. 

Rep. Pete Sessions (R-TX17) has accused the regulatory agency of engaging in "selective enforcement." Meanwhile, Rep. Patrick McHenry (R-NC10) stated that Gensler had turned the SEC into "a rogue agency." Without mincing words, Rep. Tom Emmer (R-MN6) claimed that Gensler had "abused" the agency's enforcement tools. "You've even baited companies eager to comply with you only to hit them with enforcement actions," Emmer added. 

"I think that there's laws in place. If Congress wishes to change them, they will change them, but we are enforcing the law, and there are many people in this field who are not following the laws," Gensler stated.  

Gensler has defended the SEC's "regulation by enforcement" approach, arguing that there are many cryptocurrency industry actors who are not following the securities laws. 

Meanwhile, Hester Peirce, a reputed pro-crypto commissioner, moved to undermine Gensler, arguing that the SEC has failed its duty as a regulator. She slammed the current regulatory approach for its lack of efficiency.  

Some words of praise 

At the same time, Rep. Brad Sherman (D-CA32), one of the strongest anti-Bitcoin voices on Capitol Hill, has lambasted crypto during the hearing, arguing that one magic skill offered by crypto is the ability to hide money. 

Sherman thanked the SEC for standing up to the crypto industry. "Thank you for standing up to crypto. Thank you for standing up for the rights of those investors who care about the environmental impact on their of their investment," he stressed. 

As reported by U.Today, Sherman has repeatedly called for banning crypto. However, the Californian lawmaker has already admitted that he does not actually expect this ban to happen anytime soon.