SEC's Gensler Remains Resolute in Push for Crypto Regulation Ahead of Senate Committee Appearance
Securities and Exchange Commission (SEC) Chair Gary Gensler aims to reiterate his stance that many cryptocurrencies should fall under the agency's regulatory purview when appearing before the Senate Banking Committee.
In his prepared testimony released on Monday, Gensler claimed that the industry is widely noncompliant with securities laws, highlighting the need for regulatory intervention.
"Given this industry's wide-ranging noncompliance with the securities laws, it's not surprising that we've seen many problems in these markets," the written testimony read.
"We've seen this story before. It's reminiscent of what we had in the 1920s before the federal securities laws were put in place."
The SEC Chair further highlighted the agency's enforcement actions, both settled and ongoing litigation, aimed at holding wrongdoers accountable and safeguarding investor protection.
As Congress returns after a summer break, Gensler is likely to face inquiries regarding recent court decisions that have impacted the regulatory landscape.
Last month, the US Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale, ordering the SEC to set aside its earlier rejection of Grayscale’s application and reopen the review process.
The court ruled that there was no justification for the SEC to allow Bitcoin futures-based ETFs but deny spot Bitcoin ETFs.
In a separate case, a US court ruled in favor of Ripple in the ongoing lawsuit brought by the SEC, claiming that selling XRP on exchanges in itself does not constitute an investment contract.
The ruling, issued by the District Court for the Southern District of New York, stated that the “offer and sale of XRP on digital asset exchanges did not amount to offers and sales of
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