The SEC crypto hearing will include testimony from former US SEC officials who will address concerns regarding the agency’s politicized approach to digital assets.
Former high-ranking officials are scheduled to testify in a congressional hearing against the Securities and Exchange Commission (SEC). The SEC crypto hearing, “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets,” is scheduled for September 18 at 10 a.m. EST.
SEC Crypto Hearing Witnesses Revealed
The House Financial Services Committee’s Republican leadership is organizing the SEC crypto hearing as part of an ongoing investigation into the regulatory supervision of cryptocurrency.
Additionally, the SEC’s actions under its current leadership are under increased scrutiny, and this hearing is part of that scrutiny. Dan Gallagher, Chief Legal Officer at Robinhood Markets, and Michael Liftik, Partner at Quinn Emanuel Urquhart & Sullivan, LLP, are among the witnesses who are scheduled to testify.
The SEC is a deeply ingrained institution for both individuals. From 2011 to 2015, Gallagher was an SEC Commissioner. In the interim, Liftik served as the deputy chief of staff to former SEC Chair Mary Jo White, who the agency employed.
Therefore, their testimonies are anticipated to offer valuable insider perspectives on the SEC’s operations and the potential oversights it has committed to regulating digital assets under the leadership of current SEC Chair Gary Gensler.
Teddy Fusaro, President of Bitwise, and Jennifer Schulp, Director of Financial Regulation Studies at the Cato Institute’s Center for Monetary and Financial Alternatives, are also included in the list of witnesses.
Additionally, Lee Reiners, a lecturing fellow at Duke University, will provide testimony against the American investigator.
The broader implications of the agency’s enforcement-heavy approach to cryptocurrency regulation will likely be the focus of their testimonies at the SEC crypto hearing.
The hearing’s emphasis on the SEC’s “politicized” approach indicates the increasing dissatisfaction among Republican legislators who believe that Gensler’s administration has exceeded its regulatory authority.
Gary Gensler is under scrutiny
The SEC has initiated numerous enforcement actions against cryptocurrency companies amid allegations that they have violated securities laws.
Both industry insiders and members of Congress have expressed their disapproval of these actions. Additionally, they contend that the agency has been enforcing regulations rather than issuing explicit guidelines.
Therefore, the SEC’s crypto hearing on Wednesday could be particularly significant due to the backgrounds of two of its most prominent witnesses.
It is anticipated that Gallagher and Liftik will provide firsthand accounts of the agency’s decision-making processes and cast light on internal SEC operations during their tenures.
In a concurrent development, House Republicans have initiated an investigation into the hiring practices of SEC Chair Gary Gensler. Allegations have been made that the SEC may have violated federal law by considering political leanings in its recruitment decisions.
The investigation adds a layer of pressure on Gary Gensler’s leadership and raises concerns about the impartiality of the SEC’s hiring process. Gensler is anticipated to appear on Capitol Hill later this month; however, the precise date and whether or not other SEC commissioners will accompany him have not yet been determined.
