SEC Chair Gensler faced Republican criticism over digital asset regulation in a House Financial Services Committee hearing on April 18. The Republicans accused the SEC of applying an ill-fitting NSE framework to digital assets and called for clear rules to foster innovation and protect investors. Gensler stressed most crypto tokens were securities and emphasized the importance of compliance with securities laws. Republicans criticized Gensler's rushed rulemaking process, unclear guidance on Ethereum's classification, and lack of knowledge about FTX's operational details. They accused him of incompetence and failure to protect investors.

(By Siamak Masnavi)