In a well-publicized congressional hearing scheduled on September 18, 2024, former high-ranking United States Securities and Exchange Commission executives are to testify against the agency. Dubbed “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets,” the hearing will center on the divisive SEC policies on crypto, especially under Chair Gary Gensler’s direction.
This testimony would most likely give insight into the perceived overreach in addition to the dearth of clear and explicit guidelines for the crypto industry.
Ex-SEC Officials To Testify Against SEC In Crypto Hearinghttps://t.co/xupt7Y4wRk
— John Morgan (@johnmorganFL) September 16, 2024
Witnesses And Their Insights
Dan Gallagher, a former SEC commissioner, and Michael Liftik, who was Deputy Chief of Staff to former SEC Chair Mary Jo White, are amongst an important witnesses.
Gallagher is now the Chief Legal Officer at Robinhood Markets, while Liftik is a partner in Quinn Emanuel Urquhart & Sullivan, LLP. The insider views from these two would reflect the interior happenings and decision-making of the commission during Gensler’s tenure.
Source: US House Subcommittee on Digital Assets, Financial Technology and Inclusion.
A number of the witnesses appearing before the committee will include Teddy Fusaro, the president of Bitwise. They’re joined by Jennifer Schulp of the Cato Institute. The testimonies will, in lots of respects, concentrate on general impacts of enforcement centered by the SEC.
Gensler In The Crosshairs
In recent times, the enforcement activities of the SEC as regards to cryptocurrency firms had increased. The SEC reported an all-time-high in enforcement actions last 12 months, and critics furiously argue that the agency relies on a practice called “regulation by enforcement.”
Wow—all 5 SEC Commissioners!
What are the chances @PatrickMcHenry will ask Gary—one last time—whether ETH is a security or a commodity? 😂
We will count on @RepRitchie for just a few good zingers.
May very well be @HesterPeirce’s audition for the highest spot if . . . well, you realize.
Good work… https://t.co/QmoAXmoeli
— MetaLawMan (@MetaLawMan) September 17, 2024
Once more, this has left people within the crypto community frustrated and confused as firms try and navigate murky waters of unclear regulations.
Beyond regulation, Gensler’s leadership is under review. House Republicans are investigating SEC hiring practices for political bias, casting doubt on the agency’s independence. This inquiry puts Gensler under further pressure before his congressional testimony this month.
Crypto Regulation Moving Forward
The crisis hearing might change US cryptocurrency regulation. With Gensler’s regulatory style and the SEC’s approach to digital assets under intense scrutiny, testimonies may change how cryptocurrencies are regulated.
Featured image from Getty Images, chart from TradingView