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 probably give insight into the perceived overreach as well as the lack 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 used to be Deputy Chief of Staff to former SEC Chair Mary Jo White, are among the most 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 internal happenings and decision-making of the commission during Gensler’s tenure.
Source: US House Subcommittee on Digital Assets, Financial Technology and Inclusion.
Some of the witnesses appearing before the committee will include Teddy Fusaro, the president of Bitwise. They are joined by Jennifer Schulp of the Cato Institute. The testimonies will, in many respects, focus on general impacts of enforcement centered by the SEC.
Gensler In The Crosshairs
In recent years, the enforcement activities of the SEC with regards to cryptocurrency companies had increased. The SEC reported an all-time-high in enforcement actions last year, and critics furiously argue that the agency relies on a practice called “regulation by enforcement.”
Wow—all 5 SEC Commissioners!
What are the odds @PatrickMcHenry will ask Gary—one last time—whether ETH is a security or a commodity?
We can count on @RepRitchie for a few good zingers.
Could be @HesterPeirce’s audition for the top spot if . . . well, you know.
Good work… https://t.co/QmoAXmoeli
— MetaLawMan (@MetaLawMan) September 17, 2024
Once again, this has left people in the crypto community frustrated and confused as companies attempt to 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
