Crypto News: A US House Republican committee under the leadership of Patrick McHenry, Chairman of the US House Committee on Financial Services, came out heavily in criticism of U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler. In a letter to Gensler ahead of the hearing before the House Financial Services Committee later on Tuesday. Gary Gensler is set to testify before the Committee on the oversight of the SEC. The letter addressed the SEC’s approach to the crypto market ecosystem under Gensler’s tenure, which faced heavy criticism from all stakeholders.

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The letter mentioned that the SEC forced crypto market participants into regulatory frameworks that are “neither compatible with the underlying technology nor applicable” because the firms’ activities do not involve an offering of securities. The lawmakers exposed Gensler’s conflicting position on the SEC’s efforts to lay out clear rules for crypto market compliance. The lawmakers exposed Gensler’s conflicting position on the SEC’s efforts to lay out clear rules for crypto market compliance.

SEC’s Conflicting Views On Crypto

Gensler acknowledged that digital asset trading platforms do not perfectly fit under existing laws and regulations, the letter said. They also called out the SEC’s expectation that crypto trading platforms should come forward and register despite not having perfectly fitting laws. The letter further said,

“You have been outspoken in your push for digital asset trading platforms to “come in and register” under the national securities exchange (NSE) framework. You have failed to provide a path that allows digital asset trading platforms to register.”

Without clear rules of the road, your push for firms to “come in and register” is a willful misrepresentation of the SEC’s non-existent registration process, the Republicans added.

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Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Reach out to him at [email protected].

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