Gary Gensler criticized in US Congress

We tell you how the commissioner’s “roasting” went and what kind of complaints he faced.

What’s wrong with the SEC

The hearings were held in the House Financial Services Committee, where members of Congress revealed deep disagreements among lawmakers over the SEC’s approach to the crypto industry.

Republican Congressman Tom Emmer called Gensler the worst commissioner in the history of the regulator. He accused the commissioner of creating a baseless narrative that crypto = security. Emmer emphasized that such a policy undermines the development of new technologies and deprives the United States of a competitive advantage.

One of the key episodes of the hearing was the discussion of the case of the startup DEBT Box, whose team was accused by the SEC of fraud in the amount of $50 million. The court rejected the agency’s claim, criticizing its actions as unfair, and imposed a fine of $1.8 million on the SEC. In response to questions, Gensler acknowledged the Commission’s erroneous position on the case.

However, some congressmen, such as Democrat Maxine Waters, supported the SEC’s strict policy. In her opinion, in this way the agency protects investors and maintains stability in financial markets.

Commissioners vs. Gensler

There are also disagreements within the SEC itself. Commissioner Hester Peirce, dubbed the “crypto mom” in the crypto community, believes that the Commission should have recognized the legal status of cryptocurrencies long ago. This means abandoning accusations against coin issuers that digital assets violate US securities laws. She pointed out the need for clearer regulation of the crypto industry. Earlier, US presidential candidate Kamala Harris made a similar proposal.

This isn’t the first time Gensler has been called to the carpet. His previous appearances have shown that the commissioner has no clear position on crypto and no way to resolve regulatory uncertainty.

At the next “roast”, Gensler also failed to defend his position. For example, the commissioner failed to explain to US House of Representatives member Richie Torres how, according to his logic, reselling tickets to a sports game is different from reselling securities or crypto, if in both cases we are talking about the seller’s income. According to his logic, NFTs are also securities. But sports tickets, which he does not consider securities, can also be sold in the format of non-fungible tokens. The commissioner was unable to explain the difference.

The hearings demonstrated that cryptocurrency regulation remains one of the hottest topics in U.S. politics. The role of the SEC and its chairman will be key to the development of the crypto industry in the country in the coming years, especially in the context of growing political pressure and the economic importance of digital assets.

Earlier, information appeared online that Harris, if she wins the election, could appoint Gensler as the Secretary of the Treasury. Trump, on the contrary, promises to remove the head of the SEC at the first opportunity.

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