Crypto News: The House Financial Services Committee Chairman Patrick McHenry in his initial arguments accused Gary Gensler of failing to explain how crypto firms should comply with the laws. The U.S. Securities and Exchange Commission (SEC) Chair faced the House Financial Services Committee in a hearing on the SEC’s oversight. In a pre-hearing testimony document, Gensler repeated his stance on the crypto market assets already being compatible with the existing securities laws.
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Chairman McHenry said that under Gensler’s tenure as Chair of the SEC, the agency undertook as many as 50 separate enforcement actions against the crypto market despite not clearly laying rules for operating for the stakeholders. The committee Chair said the SEC was seeking $78 million in funds to further continue in expanding enforcement actions.
“Punishing crypto market companies when not clearly mentioning rules as to how they should comply is not ideal. Regulation by enforcement is not sustainable.”
Earlier, Gensler had in his pre-hearing testimony, said crypto intermediaries were transacting in securities and have to register with the SEC, to which an all-Republican group of lawmakers opposed in a letter blasting the SEC’s views. The letter said the SEC forced crypto companies into regulatory frameworks that are incompatible with underlying technology and not applicable over laws around offering of securities. Gensler maintained in his testimony that “most crypto tokens are securities.”
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