On Wednesday, September 18, Congressman French Hill (R-AR) criticized the SEC’s regulatory approach under Gary Gensler during a House Financial Services Subcommittee hearing on Digital Assets, Financial Technology, and Inclusion, raising concerns about its impact on the cryptocurrency industry.
Rep. French Hill Takes On Gary Gensler In New Remarks
During the hearing, titled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets,” Hill criticized the agency’s regulation-by-enforcement approach to cryptocurrencies. He argued that instead of providing clarity, the SEC’s actions have led to more confusion and uncertainty in the market.
“Instead of providing legal clarity so that those who want to follow the law can do so, the Gensler SEC’s approach has injected even more confusion and uncertainty into the markets and for market participants and consumers alike,” Hill said. “How is this protecting the public?”
Instead of following the bipartisan progress we’ve made on digital assets, Gensler’s SEC has chosen to front-end the work of Congress and make spurious arguments that have been rejected by the House, the courts, and market participants.
The SEC’s approach to digital assets is a… pic.twitter.com/u9u47DilzC— French Hill (@RepFrenchHill) September 18, 2024
Hill referenced Gensler’s opposition statement to the Financial Innovation and Technology for the 21st Century Act (FIT21), which was released on the morning of the scheduled House vote.
He claimed that Gensler is “stuck on an island of his own making” following strong bipartisan support for the crypto bill.
Hill further expressed concerns that Gensler’s rigid regulatory approach could harm innovation and drive crypto businesses out of the United States.
“Whether it’s through politicized enforcement actions or by refusing to share its analysis around the legal classification of digital assets, the SEC has created a ‘lose-lose-lose’ situation for consumers, founders, investors, and everyone in between,” Hill continued.
The SEC’s Troubled Approach To Digital Asset Regulation
Following Hill’s remarks, the broader cryptocurrency community has also expressed dissatisfaction with Gensler’s approach.
Many in the sector believe the SEC has stifled innovation by failing to provide clear regulatory guidance.
Gensler is unpopular among cryptocurrency advocates, with Republican U.S. presidential candidate Donald Trump promising to remove him from office if elected in November.
“We will have regulations, but from now on, the rules will be written by the people who love your industry, not hate your industry,” Trump said during a speech at the Bitcoin 2024 Conference in Nashville.
Earlier this week, Trump criticized the SEC again during the launch of his family’s new cryptocurrency platform, World Liberty Financial.
Former President @realDonaldTrump warns of increased regulatory pressure on the crypto world if he’s not re-elected in 2024. What are the stakes for digital asset regulation? #CryptoRegulations #USPresidentialElectionshttps://t.co/QmO2ghujro
— Cryptonews.com (@cryptonews) September 17, 2024
“The SEC’s been unbelievably hostile,” Trump said, referring to the commission’s treatment of American crypto businesses. “If for some reason bad, bad things happen and we don’t win the election, those people that were under investigation and that are free as a bird right now, people that were being looked at in the crypto world, they will be living in hell because it will start the day after the election if they win.”
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