Gary Gensler, the Chair of the SEC, bears significant responsibility for the regulatory pressure on the cryptocurrency markets. If Trump is elected president, he has stated he would remove Gensler on his first day. Today, the SEC Chair and members are presenting statements in Congress, with Republican members reportedly targeting Gensler during this session.
The SEC’s Approach to Cryptocurrencies
SEC member Hester Peirce expressed her discomfort over the attempts to impose regulations on the cryptocurrency industry through sanctions. She argued that such an approach is ineffective and pointed out that there is confusion regarding the limits of the SEC’s authority.
Brad Sherman remarked a few minutes ago that the SEC is a leading institution for protecting investors and holds responsibility for nearly all intangible investment assets. He suggested that additional legislation could clarify under what conditions cryptocurrency qualifies as a security, even though he does not believe it is necessary.
Hester Peirce spoke about cryptocurrency securities, stating that regulators have failed to fulfill their clarity obligations. She emphasized the need to recognize that the token itself is not a security, a point that should have been acknowledged long ago.
Gensler maintained the SEC’s neutral stance, reiterating that placing something on a blockchain ledger does not change the economy. He stressed the importance of determining whether an investment is good, asserting that the SEC will continue to remain neutral on this issue.
Mark Uyeda highlighted the need for better advice to companies to build a stronger foundation before facing accusations. Unlike some members of his party, Brad Sherman commended Gensler for his stance against cryptocurrencies.
