Gary Gensler’s Regulatory Failures Exposed: What the Crypto Hearing Revealed

SEC is in a bigger regulatory Scoop! The highly anticipated SEC crypto hearing is set for September 18, as former officials prepare to testify against the

​SEC is in a bigger regulatory Scoop! The highly anticipated SEC crypto hearing is set for September 18, as former officials prepare to testify against the   Read MoreCrypto Regulations

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Sep 17, 2024 8:55 UTC
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The SEC is facing increased scrutiny over its handling of crypto assets.

Former officials will testify against the agency’s aggressive enforcement tactics and lack of clear guidance.

The hearing will examine the SEC’s regulatory approach, leadership, and internal decision-making.

Could another SEC conflict be brewing? A highly anticipated SEC crypto hearing is set for September 18, where former SEC officials will testify about the agency’s controversial approach to regulating digital assets.

The hearing, titled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets,” will explore the SEC’s heavy focus on enforcement and its alleged overreach in the cryptocurrency industry.

Fox Business reporter Eleanor Terrett broke the news, revealing that the entire five-member SEC commission will testify together for the first time since 2019. The next day, SEC Chair Gary Gensler will face separate questioning from the Senate, increasing the pressure on his leadership.

Hold on, but why should you care? The outcome of this hearing could have implications for investors, businesses and the future of crypto! Read on to know more.

Former SEC officials Dan Gallagher and Michael Liftik will be among the key witnesses. Gallagher, now Chief Legal Officer at Robinhood Markets, was an SEC Commissioner from 2011 to 2015. Liftik, a partner at Quinn Emanuel, was Deputy Chief of Staff to former SEC Chair Mary Jo White.

Both are expected to give insights into the SEC’s internal decision-making and regulatory challenges, especially under Gensler.

Other witnesses include Teddy Fusaro, President of Bitwise, Jennifer Schulp, Director at the Cato Institute, and Lee Reiners, a fellow at Duke University. Together, they will discuss the broader consequences of the SEC’s approach, which has focused on enforcement rather than offering clear guidelines.

Gensler’s leadership has been criticized for its aggressive actions against crypto companies, along with a lack of regulatory clarity. His enforcement-driven approach has faced backlash, with many calling for clearer rules.

In a humorous post on X, MetaLawMan noted that Representative Patrick McHenry is expected to once again ask Gensler whether Ethereum should be classified as a security or a commodity. Additionally, there’s speculation that SEC Commissioner Hester Peirce, known as “Crypto Mom,” could be preparing for a larger role within the agency.

Adding to Gensler’s troubles is a separate probe initiated by House Republicans into the SEC’s hiring practices. Allegations of political bias in recruitment have raised questions about the impartiality of the agency, putting Gensler under even more scrutiny.

This hearing could be a turning point for U.S. crypto regulation. With growing dissatisfaction over the SEC’s tactics, the testimonies may lead to important changes. As the crypto industry waits for clearer guidance, these discussions could help shape the future of digital assets in the U.S.

Also, Check Out: Ripple News: Pro-XRP Lawyer Signals Continuing Fight with SEC Over $15 Billion Losses to Retail Investors

What’s your take on the SEC’s crypto crackdown? Share your thoughts.

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