SEC’s Gary Gensler Dodges Question on Whether Ethereum Is a Security
Gensler did not give a clear and direct answer to Congressman Patrick McHenry, the committee chairman, who asked if Ether, the second-largest cryptocurrency by market capitalization, is a security.
Crypto Policy Showdown: SEC Chief to Testify in Huge Week for Regulation
The Chair of the United States Securities and Exchange Commission (SEC), Gary Gensler, is set to testify before the US House of Representatives Financial Services Committee amid a major regulatory onslaught against the cryptocurrency industry. This will be Gensler's first appearance before the committee in over a year and a half, and it will focus on the issue of oversight from the agency. The hearing arrives as the SEC is waging a widely publicized courtroom battle against the blockchain company Ripple, and the outcome of the case could have a tremendous impact on the entire crypto market. The upcoming hearing is expected to be bipartisan, with both the Republican and Democratic parties critical of Gensler's activities against the crypto industry. Additionally, the McHenry/Waters stablecoin legislation is back in the mix, with Congress reviving the 2022 legislative draft, and a legislative hearing scheduled for April 19.
Gensler Takes Aim at DeFi Platforms in Testimony Before House Financial Services Committee
SEC Chair Gary Gensler is set to testify before the U.S. House Financial Services Committee on April 18, 2023, where he will share his personal views on crypto markets and regulation. In his prepared remarks, Gensler emphasizes that most crypto tokens are considered securities and stresses the importance of compliance with securities laws. He argues that crypto investors should benefit from the same protection as other investors and highlights the current noncompliance in the crypto market, which endangers investors and jeopardizes public trust in capital markets. Gensler notes that the SEC has taken action to address this issue through enforcement actions and rule proposals. He emphasizes that regulation aims to protect U.S. investors and reiterates that Congress has given the SEC a mandate to protect investors, regardless of the labels or technology used.
Video of SEC Chair Praising Algorand Resurfaces After Recently Deeming It a Security
A video of US SEC Chair Gary Genser praising smart contract platform Algorand in 2019 has resurfaced on Twitter following the SEC's declaration that Algorand's ALGO token is an unregistered security. The SEC's lawsuit against crypto trading platform Bittrex on 17 April took issue with the Algorand Foundation's initial coin offering (ICO) of ALGO in June 2019. Cryptocurrency researcher Mason Versluis tweeted the video on 17 April, criticizing Genser for "shilling" ALGO, and others called him out for hypocrisy. Genser is due to testify before the US House Committee on Financial Services on 18 April, and is expected to be questioned over his Algorand comments.
Key Agendas In SEC Chair Gensler Prepared Testimony Before US House
SEC Chair Gary Gensler is set to testify before the House Financial Services Committee on the oversight of the SEC, and his prepared testimony shows that he will address several key agendas related to crypto, equity markets, private funds, AI, money market funds, treasury markets, and climate risk disclosure. He proposes to update rules and regulations as they haven’t been updated since 2005 and believes that the SEC’s best execution standard for brokers covers all sectors of the securities markets, including crypto-asset securities. Gensler reiterates that most crypto tokens are securities and crypto exchanges and other companies need to register with the SEC to protect investors against fraud and other misconduct in the crypto market. He claims that crypto companies can’t defy the securities laws by calling themselves a DeFi platform and that the SEC will continue regulation by enforcement to protect investors. (coingape)
Crypto Evening Briefing: China’s State-Affiliated Banks Are On-Boarding Crypto Companies in Hong Kong
Chinese banks are opening bank accounts for regulated crypto companies, with several acting as a payment layer for the crypto platforms.
US Congressman Declares Plan to Fire SEC Chair Gary Gensler for Crypto Overreach
Republican Congressman Warren Davidson has introduced legislation to remove Securities and Exchange Commission (SEC) Chair Gary Gensler from his role. The legislation comes in response to proposed rules by the SEC that would redefine the meaning of an "exchange" and bring such entities under increased regulatory scrutiny. Davidson suggested appointing a new Executive Director that reports directly to the SEC's board to replace Gensler, and referenced criticism of the SEC's approach to crypto companies from SEC Commissioner Hester Peirce. Some in the crypto community have expressed concerns about the SEC's actions, with one user suggesting that the SEC has kept the process "so complex that applicants give up."
Rep. Davidson to Introduce Legislation to Fire SEC Boss Gensler for Crypto Overreach
SEC Chair Gary Gensler appears to be facing potential legislation that would remove him from his role. The move comes after the SEC's latest announcement about revisiting the proposed redefinition of an "exchange," which has been criticized by some in the crypto community. The proposed rule amendments could bring certain brokers under additional regulatory scrutiny and modernize rules that define an exchange. However, some have suggested it is an overreach of the SEC's authority that could jeopardize participation in the space. SEC Commissioner Hester Peirce, known as "Crypto Mom" for her pro-crypto positions, has criticized the proposed rule amendments and accused the SEC of using enforcement actions to develop the law on a case-by-case basis rather than creating clear regulations. Peirce has also suggested that a concept release should have been issued instead of proposed rule amendments, given the SEC's limited understanding of the space. (Cointelegraph)
XRP Lawyer Recalls Gary Gensler Video On ‘Crypto’ Panic Among Banks
Attorney John Deaton, who represents over 76,000 XRP token holders in the ongoing Ripple lawsuit against the SEC, shared a video from 2018 wherein US investor Tim Draper is seen saying to SEC Chair Gary Gensler that the banks were in panic about the rise of cryptocurrency market.
SEC Expected to Increase Scrutiny on Decentralized Finance Exchanges, Including DeFi Projects
The U.S. Securities and Exchange Commission (SEC) is expected to declare on Friday that rules governing trading exchanges in the U.S. also apply to decentralized finance. This action would formalize the SEC's assertion of jurisdiction over activities labeled 'decentralized' that the agency sees as still falling under traditional definitions of securities trading. It may also signal increased scrutiny by the regulatory agency into that area of digital assets.
