Gary Gensler Maintains Crypto Regulation

After his meeting in front of Congress yesterday, it’s clear that SEC Chairman Gary Gensler has no plans to change how cryptocurrencies are regulated. Gensler also said that cryptocurrency sites are “a bunch of middlemen” who must follow the law.

At the end of the hearing, US Congressman Warren Davidson publicly introduced legislation to change how the SEC works. The bill would then remove the agency’s chair position and replace it with an executive director who would answer directly to the board. 

Gary Gensler Standing Firm on Crypto Perspective

Yesterday, there was a long meeting where the man in charge of how the US Securities and Exchange Commission works were questioned. So, Congress needed to be more cautious about how it responded to the agency’s moves regarding enforcing regulations in the crypto sector. 

Despite what was said at the meeting, SEC chair Gary Gensler has no plans to change how he regulates cryptocurrencies. During the meeting, Gensler clarified what he thinks about compliance in crypto.

Gensler said, “We have a whole field in crypto that understands the law, and if they are providing exchange services, broker-dealer services, clearing services of crypto security tokens, they should come into compliance. They don’t have a choice.” 

Also, the chair of the SEC said, “They don’t usually follow the rules, and they need to do so.” On the other hand, Congress made it clear that they disagreed with the SEC chair. In particular, Rep. Patrick McHenry, the head of the Committee, spoke out against these acts.

McHenry said, “You’re punishing digital asset firms for allegedly not adhering to the law when they don’t know it will apply to them.” But Gensler stuck to his opinion that firms do know the rules. He also said that he thought the business had a clear regulatory framework. 

Ultimately, Gensler’s thoughts about his work must show what will happen to him. The House Financial Services Committee will then decide what to do based on what was said. But if Davidson’s point of view is shared, Gensler’s might not matter.