The head of the SEC was asked to be more productive and tougher to deal with crypto firms
Date: 2023-07-21 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
Representatives of the Republican Party in the committees of the US House of Representatives demanded that the chairman of the US Securities and Exchange Commission (SEC) Gary Gensler "productively participate" in the development of legislation to regulate the cryptosphere
"The legislation will do much more to prevent future collapses of digital asset companies than coercive measures," French Hill and Dusty Johnson said.
In a letter to Gensler, they expressed concern about the SEC's recent proposals for digital assets, as well as some of the Commission's enforcement actions against crypto companies
"This approach does not result in compliance and customer protection, but instead creates additional confusion, as evidenced by the recent summary judgment," the Republicans wrote.
Politicians believe that the legislative framework will establish a process for firms that will help them comply with consumer protection. At the same time, the SEC will not "rely on coercive measures to punish the attacker after the damage has already been done."
Senators ask Gensler to "crack down" on crypto companies
Senators of both parties in charge of the SEC demanded that Gensler crack down even more harshly on cryptocurrency companies. Senator Dick Durbin wants to push the head of the regulator to more aggressive control over it.
According to the politician, the SEC charges made against crypto exchanges FTX and Binance and their executives cannot properly protect or guard customer assets.
"It happens over and over again. It's not like America," he explained.
Gensler Wants More Money to Fight Crypto Firms
While Gensler agreed that there were "a huge number of unscrupulous individuals" in the field, he defended the underlying technology. He also asked for additional SEC funding to oversee the industry in the amount of $109 million, the money the SEC needs, including to hire new employees.
Such a request was made against the backdrop of the victory of the Ripple startup in the battle against the regulator after years of proceedings. Last week, the court ruled that sales of the XRP token to retail investors cannot be considered a security.
