US SEC Chair Gary Gensler’s Congress testimony ignites discussions as the agency’s aggressive crypto regulation meets pushback.
The crypto market is on edge as U.S. SEC Chair Gary Gensler confirms he will testify before Congress this week.
On September 24 and 25, Gensler will appear before the Financial Services Committee and the U.S. Senate Banking Committee.
US SEC Chair Gary Gensler To Testify Before Congress
Given its aggressive regulatory stance, the crypto community and lawmakers expect intense scrutiny of the SEC’s approach to digital assets.
Gensler’s leadership is under considerable pressure from both political parties, with increasing criticism over the agency’s handling of crypto regulations.
As the U.S. Presidential election draws near, Gensler will likely face tough questions about his approach to regulating the crypto industry and addressing high-profile fraud cases such as FTX and Terra.
Coinbase’s Chief Legal Officer recently criticized the SEC’s classification of “crypto asset securities,” amplifying backlash from the community.
Ron Hammond, Director of Government Relations at the Blockchain Association, noted that Gensler will face bipartisan questioning during the hearings.
According to Hammond, this testimony will differ from previous ones, as Gensler now has fewer allies due to dissatisfaction with the SEC’s recent approach to crypto regulation.
Notably, Gensler will be joined by other SEC Commissioners for the first time in such a hearing, a rare occurrence highlighting the proceedings’ significance.
While Democratic leaders are expected to defend Gensler’s policies, Republicans will likely challenge the SEC’s direction and push him on key issues.
SEC Faces Backlash Over Crypto Crackdown
Under Gensler’s leadership, the SEC has faced mounting criticism from both the crypto industry and lawmakers.
Recently, House Majority Whip Tom Emmer and Financial Services Committee Chair Patrick McHenry criticized the SEC for labeling crypto airdrops as securities.
In a letter to Gensler, the lawmakers emphasized the importance of airdrops for decentralization and blockchain development, accusing the SEC of fostering a “hostile regulatory environment.”
The timing of Gensler’s testimony also stirs debate, as he has faced several legal setbacks with courts and Congress questioning the SEC’s aggressive enforcement tactics.
The situation has escalated further after former U.S. President Donald Trump stated he would remove Gensler from his position if re-elected in the upcoming U.S. Presidential election.
