A well-known Republican legislator has harshly attacked Gary Gensler, head of the Securities and Exchange Commission (SEC), for what he says to be a politically motivated attitude to control cryptocurrencies. Representative French Hill of Arkansas charged Gensler of generating “confusion and uncertainty” in the crypto market during a hearing on September 18 before the House Subcommittee on Digital Assets, Financial Technology, and Inclusion.
At the hearing “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets,” Rep. Hill recommended substitute legislative proposals including the FIT21 Act, presently under review in Congress. He voiced worries that the present enforcement policies of the SEC were inhibiting innovation and harming genuine crypto companies.
Political Reactions and Counterpoints
Stephen Lynch, a Democratic subcommittee member, refuted assertions of politicization by contending that the actual problem could be the political machinations of the crypto sector. Lynch noted the enormous financial impact the crypto sector has on the next 2024 elections and claimed the sector is opposing rules in order to safeguard its interests.
Lynch also attacked recent crypto activity by former President Donald Trump as a poorly thought out endeavor. He contended that the emphasis on crypto control is eclipsing the possible advantages of the technology.
Answers from politicians and businesses
Attesting during the hearing, former SEC commissioner Dan Gallagher and ex-enforcement head Michael Liftik argued for legislative remedies to correct what they said to be the uneven enforcement policies of the agency. Democrat and strong supporter of digital assets North Carolina Representative Wiley Nickel called Gensler’s strategy “politicized” and detrimental to consumers as well as innovation.
The future leadership of the House Financial Services Committee and the digital assets subcommittee is yet unknown as November draws near; possible changes depend on the outcome of the election.
