U.S. Senator Advocates for Additional Hearings on SEC’s Gensler and Crypto Regulation

Police & Regulations
Sep 8, 2023 at 11:32 am

Senator Bill Hagerty, a Republican member of the Senate Banking Committee, is advocating for a deeper examination of the interactions between the securities regulator and the digital assets industry.

Senator Bill Hagerty (R-Tenn.) offered a glimpse into the upcoming scrutiny U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler is likely to face when Congress reconvenes after its summer recess. During a speech on Thursday, Hagerty accused the regulator of hindering crypto innovation.

Hagerty, along with other senators from the Senate Banking Committee, will have the opportunity to directly question Gensler next week during a routine hearing on SEC oversight scheduled for September 12. However, Hagerty believes this is insufficient. He expressed that the Democrat-controlled committee should arrange additional hearings specifically focused on evaluating the actions of Gensler and the SEC concerning the U.S. crypto industry.

He remarked, “The current environment is highly unfavorable. It is pushing companies that seek to invest and expand towards more crypto-friendly regulatory environments overseas. This is not the direction we should be heading in right now.”

Hagerty asserted that Gensler’s confrontational stance toward crypto is detrimental to the industry. He also criticized U.S. banking regulators for fostering a cautious attitude among banks regarding involvement with cryptocurrencies.

When asked about the potential success of ongoing crypto legislative efforts, Hagerty refrained from making predictions. However, he suggested that Congress should take an incremental approach, addressing smaller components rather than pursuing a comprehensive strategy. He explained that this was the objective of his two-page Stablecoin Transparency Act – to establish immediate, straightforward rules.

The Senate Banking Committee, chaired by Senator Sherrod Brown (D-Ohio), holds a pivotal role in shaping future crypto legislation. The senior Democrats on the committee have been relatively reserved about their intentions. While the House Financial Services Committee has pushed crypto-related bills to the floor in the House of Representatives, it remains uncertain what Senator Brown's committee will do with such proposals.

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