Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), will testify before the House Financial Services Committee on Tuesday, April 18, on SEC oversight. Before the trial; Gensler’s prepared statement has emerged showing that he plans to target several key items, including crypto, equity markets, private funds, artificial intelligence, money market funds, treasury markets, and climate risk. Cryptocurrencies are also included in the statement. Here are the details…
Gensler to make a statement about cryptocurrencies
Gensler believes that all cryptos fall under the securities laws and recommends updating rules and regulations that have not been updated since 2005, despite the growing market size, increasing number of American investors, and rapidly changing technology. It also aims to target crypto and artificial intelligence under SEC rules and claims that the best practice standard for brokers covers all sectors of the securities markets, including equities, fixed income and crypto asset securities.
Gensler claims that most crypto tokens are securities and crypto exchanges and other companies must register with the SEC. The SEC aims to protect investors against fraud, manipulation, front-running, wash-trade sales, and other abuses in the crypto market. However, despite criticism from prominent figures and companies in the crypto market, the SEC continues to regulate the market through sanctions.
Gensler also states that crypto companies cannot ignore securities laws by calling themselves DeFi platforms. According to Gensler, mismatch in the crypto market not only puts investors at risk, but also puts the public’s trust in the capital markets at risk.
Gensler’s presidency in jeopardy
Meanwhile, Congressman Warren Davidson is reportedly preparing to pass legislation to remove Gensler from his position as SEC Chairman. As we reported on Kriptokoin.com, the US representative in Ohio, Warren Davidson, announced that he intends to pass a new law aimed at removing the current chairman of the SEC, Gary Gensler. Davidson responded to a tweet from Coinbase’s chief legal officer, Paul Grewal. Grewal shared several remarks from “Crypto Mother” Hester Peirce criticizing the SEC’s reluctance towards the crypto industry.
The U.S. Congressman has stated that he plans to replace the role of the SEC president with an Executive Director who reports to the Board, but former heads of the SEC would not be suitable for the role. Recently, the SEC has revealed its intention to review the redefinition of an “exchange” under its rules. This announcement was followed by political attacks against Gary Gensler, who was the head of the institution at that time. SEC commissioner Hester Pierce expressed her concerns about the SEC’s moves towards cryptocurrencies.
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