Gary Gensler’s open war against the crypto ecosystem is apparently not over. The chairman of the Securities and Exchange Commission (SEC) has just requested additional funding to continue to tighten the screws on companies in the sector. But Congress might have a say…
Gary Gensler asks for $2.4 billion
Gary Gensler made the request for White House funding yesterday during a White House hearing. The Chairman of the SEC justified this request by “the increased complexity of capital markets»… Especially the cryptocurrency sector :
“Rapid technological innovation in financial markets has led to misconduct in new and emerging areas, and the crypto sector is not the least. Responding to this requires new tools, new expertise, and resources.»
Hence a high financing requirement according to Gary Gensler, who explains that the resources of the SEC are already used to the maximum. The chairman of the SEC took the opportunity to reiterate his characteristic attacks with regard to cryptocurrencies. In particular, he claimed that cryptocurrency investors put “their hard earned money at riskdirecting it towards a highly speculative asset class“.
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Gary Gensler will have to justify his actions to Congress
Whether this budget increase is granted or not, the crypto ecosystem could find relief in a future interview of the head of the SEC with the American Congress. Gary Gensler will indeed have to justify his actions to the House of Representatives Financial Services Committee on April 18.
Republicans will hold @GaryGensler accountable for his flagrant disregard for the law, jurisdiction, and the APA.
— Financial Services GOP (@FinancialCmte) March 28, 2023
As a reminder, the Commission oversees the entire financial sector, so this includes the scope of the SEC. A subcommittee has also been created specifically for everything related to cryptocurrencies. And this subcommittee is known for its representatives particularly open to cryptocurrencies.
For his part, the Chairman of the Financial Services Commission reaffirmed that he wanted more guidance from the SECespecially regarding how Gary Gensler took on the cryptocurrency industry:
“This is going to be our first SEC surveillance hearing. This will concern his [Gary Gensler ndlr.] regulations and its approach to digital assets.»
The news could provide relief to an American crypto ecosystem that has been particularly shaken in recent months by the onslaught of the SEC. Some, like Coinbase, claim that the US regulator is cutting short any attempt at dialogue. Further monitoring of the regulator will therefore certainly be considered welcome.
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Source: House of Representatives
Image: Third Way Think Tank via Flickr (CC BY-NC-ND 2.0)
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