SEC Chair Gary Gensler Intends to Keep Crypto Regulation Firm

Ripple Vs. SEC

After his Congressional hearing, it is evident that SEC Chairman Gary Gensler has no intention of changing his stance on regulating cryptocurrencies. He emphasized that crypto platforms are intermediaries and must follow the law. 

The hearing ended with Congressman Warren Davidson introducing a bill to reorganize the SEC. The proposed legislation would remove the position of the chair and replace it with an executive director who would report directly to the board.

Related: Hogan Suggests SEC Will Not Fight Ripple Victory

Gary Gensler Held Strong To His Opinion

Yesterday, a lengthy hearing was held where the individual responsible for the US Securities and Exchange Commission’s regulatory approach was questioned by Congress. Lawmakers were direct in their queries regarding the agency’s enforcement actions concerning the cryptocurrency industry.

Despite the discussions during the Congressional hearing, it seems that SEC chair Gary Gensler has no plans to change his approach toward regulating the cryptocurrency industry. During the hearing, Gensler restated his belief about the importance of complying with regulations in the crypto space.

Gensler stated, “We have a whole field in crypto that understands the law, and if they provide exchange services, broker-dealer services, clearing services of crypto security tokens, they should comply. They don’t have a choice.”  

During the hearing, the SEC Chair reiterated, “They’re noncompliant generally, and they need to come into compliance.” However, his comments were met with strong disapproval from Congress. Rep. Patrick McHenry, the Committee Chairman, specifically voiced his opposition to Gensler’s approach to regulating the crypto industry.

“You’re punishing digital asset firms for allegedly not adhering to the law when they don’t know it will apply to them,” McHenry stated.

 However, Gensler affirmed his belief that firms do understand the law. Moreover, he stated his belief that a clear regulatory framework does exist within the industry. 

Related article: XRP Community Unites to Counter SEC’s Targeting of Ripple

While Gensler may hold certain beliefs about his performance, they do not necessarily determine his future. The House Financial Services Committee will make its own conclusions based on the testimony presented. Suppose Congressman Davidson’s views are representative of others in the committee. In that case, it suggests that Gensler’s perspective may not hold much weight.

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