{"id":462843,"date":"2024-09-25T13:49:25","date_gmt":"2024-09-25T13:49:25","guid":{"rendered":"https:\/\/www.crypto-news-flash.com\/?p=859585"},"modified":"2024-09-25T13:49:25","modified_gmt":"2024-09-25T13:49:25","slug":"lawmakers-slam-gensler-as-most-destructive-sec-chair-during-crypto-regulation-hearing","status":"publish","type":"post","link":"https:\/\/e-bitco.in\/index.php\/2024\/09\/25\/lawmakers-slam-gensler-as-most-destructive-sec-chair-during-crypto-regulation-hearing\/","title":{"rendered":"Lawmakers Slam Gensler as \u2018Most Destructive\u2019 SEC Chair During Crypto Regulation Hearing"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.crypto-news-flash.com\/wp-content\/uploads\/2021\/10\/crypto-col-2.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<ul>\n<li><strong>U.S. lawmakers, led by House Majority Whip Tom Emmer, criticized SEC Chair Gary Gensler\u2019s crypto regulation approach accusing him of overstepping authority.<\/strong><\/li>\n<li><strong>Lawmakers expressed frustration over Gensler\u2019s vague responses regarding digital assets and questioned the SEC\u2019s unequal application of regulations.<\/strong><\/li>\n<\/ul>\n<hr>\n<p><span>U.S. lawmakers recently grilled Securities and Exchange Commission (SEC) Chair Gary Gensler, criticizing his approach to crypto regulation. The lawmakers spotlighted the SEC\u2019s heavy-handed, inconsistent enforcement agenda. House Majority Whip Tom Emmer led the charge, accusing the SEC Chair of overstepping his authority.<\/span><\/p>\n<p><span>\u201cYou\u2019ve invented the term \u2018crypto asset security,&#8217;\u201d Emmer said during the Financial Services Committee hearing. He pointed out that Gensler\u2019s use of the term had no legal foundation. Moreover, Emmer argued that the SEC Chair had launched a regulatory campaign against cryptocurrencies based on this fabricated term. However, the SEC withdrew the campaign at a later stage.&nbsp;<\/span><\/p>\n<p><span>\u201cWe could not have had a more historically destructive or lawless chairman of the SEC,\u201d Emmer added. Emmer also criticized Gensler\u2019s handling of specific cases, notably the SEC\u2019s lawsuit against Debt Box, a crypto startup accused of fraud.<\/span><\/p>\n<p><span>The case, which centered on allegations of a $50 million scam, was dismissed. In addition, the SEC was ordered to pay $1.8 million in legal fees. Emmer accused SEC attorneys of fabricating evidence to align with Gensler\u2019s anti-crypto stance. Gensler acknowledged the mishap and stated, \u201cThe matters, in that case, were not well handled.\u201d Earlier this month, the SEC also faced an investigation into hiring practices raising concerns of potential bias, <a href=\"https:\/\/www.crypto-news-flash.com\/sec-chair-gary-gensler-under-investigation-what-it-means-for-ripple-and-xrp\/\" target=\"_blank\" rel=\"noopener\">reported<\/a> CNF.&nbsp;<\/span><\/p>\n<h3>Gary Gensler Avoids Token vs. Securities Discussion<\/h3>\n<p><span>Financial Services Committee Chairman Patrick McHenry accused the SEC of becoming a \u201crogue\u201d agency under Gensler\u2019s leadership. He noted the lack of clarity in the terms the SEC uses when referring to digital assets. He pointed out that the regulator had used terms like \u201ccrypto tokens,\u201d \u201ccrypto securities,\u201d and \u201cdigital asset securities\u201d interchangeably, creating confusion.&nbsp;<\/span><\/p>\n<p><span>In response, Gensler downplayed the importance of specific terminology. He stated that what mattered most was the \u201ceconomic reality\u201d of the asset. He cited the Howey test, a legal precedent for determining whether a transaction qualifies as an investment contract under U.S. securities law. Furthermore, the SEC chain also issued a stark warning to crypto exchanges on complaint matters, <a href=\"https:\/\/www.crypto-news-flash.com\/sec-boss-gary-gensler-issues-stark-warning-to-crypto-exchanges-on-compliance\/\" target=\"_blank\" rel=\"noopener\">reported<\/a> CNF.&nbsp;<\/span><\/p>\n<p><span>\u201cIt really goes down to a Supreme Court test, which is the law of the land, called the Howey test,\u201d Gensler said. However, McHenry expressed frustration with Gensler\u2019s vague answers and lack of clear distinctions between different types of digital assets.<\/span><\/p>\n<h3>Frustration Over SAB 121<\/h3>\n<p><span>In addition, lawmakers have also taken issue with SEC regulations affecting crypto custodians. Representative Wiley Nickel questioned whether the SEC would reconsider its Staff Accounting Bulletin No. 121 (SAB 121). Nickel argued that this bulletin could make the digital asset ecosystem \u201cless safe\u201d by preventing U.S. banks from managing crypto ETFs.<\/span><\/p>\n<p><span>Nickel noted that it will concentrate risk in non-bank entities, making the system more vulnerable. Gensler defended the rule, stating, \u201cNo, it\u2019s a good accounting bulletin.\u201d<\/span><\/p>\n<p><span>Thereafter, Nickel pointed to a recent exemption granted to Bank of New York Mellon from reporting requirements, per the CNF <a href=\"https:\/\/www.crypto-news-flash.com\/breaking-billion-dollar-bank-bny-set-to-custody-bitcoin-btc-as-the-first-bank-in-u-s-history\/\" target=\"_blank\" rel=\"noopener\">report<\/a>. \u201cDifferent rules for different folks,\u201d he said. However, Gensler denied this, asserting that they have applied rules equally.<\/span><\/p>\n<p><span>Commissioner Mark Uyeda also weighed in on the state of the SEC under Gensler\u2019s leadership. Rep. Mike Lawler asked whether the SEC remained the \u201cgold standard\u201d among regulators. To this, Uyeda responded, \u201cOur condition today in rule-making\u2026 is below the average.\u201d<\/span><\/p>\n<div class=\"tve-leads-shortcode tve-leads-triggered tve-tl-anim tl-anim-instant tve-leads-track-shortcode_228374\">\n<div class=\"tl-style\" id=\"tve_tcb2_set-001\" data-state=\"50\" data-form-state>\n<div class=\"tve-leads-conversion-object\" data-tl-type=\"shortcode_228374\">\n<div class=\"tve_flt\">\n<div id=\"tve_editor\" class=\"tve_shortcode_editor\">\n<div class=\"thrv-leads-form-box tve_no_drag tve_no_icons thrv_wrapper tve_editor_main_content thrv-leads-in-content tve_empty_dropzone\" data-css=\"tve-u-185a09262cb\">\n<div class=\"thrv_wrapper thrv_text_element\">\n<p data-css=\"tve-u-185a09262d4\"><span data-css=\"tve-u-185a09262d5\">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; No spam, no lies, only insights. You can unsubscribe at any time.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.crypto-news-flash.com\/\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. lawmakers, led by House Majority Whip Tom Emmer, criticized SEC Chair Gary Gensler\u2019s crypto regulation approach accusing him of overstepping authority. Lawmakers expressed frustration over Gensler\u2019s vague responses regarding digital assets and questioned the SEC\u2019s unequal application of regulations. U.S. lawmakers recently grilled Securities and Exchange Commission (SEC) Chair Gary Gensler, criticizing his approach [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":462844,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[1716,455,25,4074,10041],"class_list":{"0":"post-462843","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-other","8":"tag-crypto-regulations","9":"tag-gary-gensler","10":"tag-news","11":"tag-sec-chairman","12":"tag-tom-emmer"},"_links":{"self":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/462843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/comments?post=462843"}],"version-history":[{"count":0,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/462843\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media\/462844"}],"wp:attachment":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media?parent=462843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/categories?post=462843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/tags?post=462843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}