Cash News
SEC Chair Gensler Signals Continued Crypto Scrutiny
On Wednesday, September 18, SEC Chair Gary Gensler reinforced his stance on crypto regulation in a CNBC interview. Chair Gensler emphasized the need to protect retail investors, stating,
“This is a field that’s rife with fraudsters and scammers and grifters, and it just has been. There’s nothing incompatible about the field with the basic protections that are in the securities laws. I mean, if you store something on an accounting ledger or record ledger called the blockchain, investors still need to have basic protections. […] So I would say that there’s a lot of clarity that’s called the US securities laws that have worked for 90 years.”
Notably, Gensler’s comments suggested the agency remains committed to regulating the digital asset space through enforcement.
Congress to Hear SEC Testimony on Regulatory Practices
The timing of the Gensler interview coincided with the US House Committee on Financial Services announcing a full committee hearing on September 24, entitled Oversight of the Securities and Exchange Commission. Notably, all five SEC Commissioners will testify before the Committee for the first time since 2019.
Since the announcement, the Financial Services GOP highlighted recent cases where the SEC faced legal pushback for reckless agenda and abuse of power. These included SEC cases against Debt Box, Grayscale, and Ripple.
US lawmaker scrutiny of SEC Chair Gensler and the SEC’s oversight of the digital asset space can be positive for crypto price trends. However, the SEC’s intent to continue targeting the crypto space suggests a possible appeal against rulings from the SEC vs. Ripple case. The SEC has until October 7 to file an appeal.