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Gary Gensler to Face Intense Scrutiny in September Over DeFi and SEC Oversight
The US House Financial Services Committee is gearing up for a critical month in September, with a series of hearings set to address key issues in the crypto space. Among the highlights is a much-anticipated testimony from SEC Chair Gary Gensler, who will be grilled on the SEC’s oversight of digital assets, decentralized finance (DeFi), and the agency’s controversial enforcement practices.
U.S. House to hold key crypto hearings in September
— CoinNess Global (@CoinnessGL) August 29, 2024
The U.S. House Financial Services Committee plans a series of crypto-focused hearings in September, covering decentralized finance (DeFi), SEC oversight and "pig butchering" scams, CoinDesk has reported. The hearings will begin…
The hearings will begin on September 10, focusing on the DeFi sector, a rapidly evolving area within the crypto industry that has drawn significant attention from regulators. This session will likely set the tone for future regulations, with potential implications from both the SEC and the Internal Revenue Service (IRS) looming large.
The stakes are particularly high as the SEC has tightened its grip on digital assets, leading to criticism for what many perceive as overreach. The agency’s actions have ignited a broader discussion about the right level of regulation in the crypto world, with some voices calling for the Commodity Futures Trading Commission (CFTC) to take on a larger role.
DeFi and SEC Oversight Take Center Stage
On September 18, the committee will hold two key sessions. The morning session will scrutinize the SEC’s enforcement actions, particularly those related to digital assets. Gensler’s leadership has been marked by aggressive crackdowns, which some argue have stifled innovation in the US crypto industry.
The afternoon session will turn to the rise of “pig butchering” scams, fraudulent schemes where scammers pose as romantic partners to deceive and steal from victims in the crypto space.
The crescendo of these hearings is set for September 23, when the full SEC, including Gensler, will testify before the committee. This hearing is particularly significant as it could shape the future of crypto regulation in the U.S., with some lawmakers pushing to curtail the SEC’s authority in favor of the CFTC.
Potential Shifts in Regulatory Power
This series of hearings comes at a crucial time, as Congress is actively negotiating potential crypto legislation. Senate Majority Leader Chuck Schumer has expressed a strong desire to move forward with crypto regulations, making these discussions all the more pivotal.
Rep. Patrick McHenry, the committee’s chairman, has emphasized the need for clear federal rules on crypto before his retirement at the end of the year. The outcome of these hearings could have far-reaching consequences for the future of the US crypto industry, especially as the SEC’s aggressive stance under Gensler continues to be a point of contention.
The hearings in September will not only scrutinize the current state of the crypto industry but could also redefine the regulatory landscape and set the stage for how the regulators will manage and oversee digital assets in the future.
Gary Gensler to Face Intense Scrutiny in September Over DeFi and SEC Oversight
