Republican Congressman Ted Budd claims that the Securities and Exchange Commission (SEC) Chairman Gary Gensler is driving the crypto industry out of the United States and into the arms of communist China. Budd accused Gensler of adopting a one-size-fits-all regulatory approach and warned that China could take advantage of the situation and dominate the crypto market. Budd made the allegations during a House Financial Services Committee hearing on September 14, 2021. He urged Gensler to reconsider his position and develop a crypto regulation framework that supports innovation and growth.
GOP Lawmakers Criticize SEC Chairman’s Approach to Crypto Regulation
Republican lawmakers have criticized the approach of Gary Gensler, chair of the US Securities and Exchange Commission (SEC), to regulating the cryptocurrency industry. At a hearing in front of the GOP-controlled House Financial Services Committee, Gensler hinted that the fast-moving digital asset industry was hard to keep up with. But lawmakers furiously attacked Gensler for not being clearer with his rulemaking, with Rep. Tom Emmer (R-MN) claiming that U.S. tech companies were suffering as a result.
Gensler, who took the job in 2021, claims that most coins and tokens fall under the securities definition, but many claim that the body is overstepping its authority. The SEC has quickly targeted major U.S. crypto brands, issuing charges for offering unregistered securities and violating securities laws. These actions have some politicians, particularly Republicans, claiming that the regulator’s stance on cryptocurrency will stifle innovation in the U.S.
The regulator today responded by saying he could use more manpower when regulating the crypto industry. “In terms of digital assets, we could certainly use more resources,” he said. “Definitely there are more things to look at and investigate than we have people on the staff to do.”
Despite Gensler’s statement, Republican lawmakers are still waiting for clear rules for crypto companies. Before the hearing, they dropped an open letter criticizing the SEC for a lack of clear rules in the industry. And while Gensler may be hinting at the difficulties of regulating the crypto industry, critics argue that without a clear regulatory framework, innovation in the U.S. will be stunted.
In conclusion, the push and pull between the SEC and the crypto industry continues, as Republican lawmakers criticize Gensler’s regulatory approach, and the crypto sector awaits more clear regulations to enable innovation to continue. Stay up-to-date with the latest crypto news and daily updates in your inbox.