As Congress returns from its summer break, US Senator Bill Hagerty has taken a strong stance against the U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, accusing him of inhibiting cryptocurrency innovation. In a speech delivered on Thursday, Senator Hagerty previewed the growing discontent among lawmakers regarding the regulatory approach to cryptocurrencies.
The US Senator wants all focus on Gary Gensler
US Senator Hagerty and other members of the Senate Banking Committee will have the opportunity to question Chair Gensler directly during a routine hearing focused on SEC oversight scheduled for September 12. However, Senator Hagerty believes that this single hearing is insufficient. He contends that the Democrat-controlled Senate Banking Committee should schedule additional hearings specifically dedicated to examining the actions of Chair Gensler and the SEC about the U.S. crypto sector.
Senator Hagerty expressed his concerns, stating, “It is a terrible environment. For those companies who are trying to invest and expand, it’s forcing them to look overseas to more favorable regulatory environments. That’s not where we need to be right now.” This sentiment echoes the frustrations of many within the cryptocurrency industry who have voiced concerns about stifling innovation due to regulatory uncertainty.
Hagerty pointed out that Chair Gensler’s adversarial stance toward cryptocurrency is detrimental to the industry. However, he also criticized U.S. banking regulators for creating an atmosphere of caution among banks regarding their involvement with cryptocurrencies. Regarding the future of cryptocurrency legislation, US Senator Hagerty declined to speculate on which ongoing efforts are most likely to make progress.
Calls for hearing to examine SEC’s impact on the crypto sector
The US Senator also advocated for an incremental approach, suggesting that Congress should tackle the regulatory framework in smaller, more manageable pieces rather than pursuing comprehensive legislation. He cited his two-page Stablecoin Transparency Act as an example of such an approach, aiming to establish straightforward rules promptly. In the realm of cryptocurrency regulation, the Senate Banking Committee, led by Senator Sherrod Brown, plays a pivotal role.
The intentions of senior Democrats on the committee have been relatively quiet, in contrast to the House Financial Services Committee, which has advanced cryptocurrency-related bills to the floor. The path that Senator Brown’s committee will take regarding cryptocurrency legislation remains uncertain. Senator Hagerty’s critique of Chair Gensler and the SEC’s approach to cryptocurrency regulation reflects the ongoing debate within Congress about the appropriate regulatory framework for the digital asset space.
As the cryptocurrency industry continues to evolve, lawmakers are grappling with the need to strike a balance between fostering innovation and safeguarding investors and financial stability. The upcoming Senate Banking Committee hearing with Chair Gensler is expected to shed further light on the regulatory direction that the United States will take regarding cryptocurrencies and blockchain technology.
