Today the Senate Banking Committee held its first hearing on Gary Gensler’s appointment as chairman of the Securities and Exchange Committee. The fee will have a huge impact on the future of cryptocurrency regulation as the SEC has been a sticking point in key areas such as the status of ICOs (Initial Coin Offerings), approving new funds, publicly traded companies, and the initial public offering of cryptocurrency companies.
In his speech to the committee, however Gensler dodged any specific changes he would make to the SEC’s policy regarding cryptocurrencies. It supported previous decisions like banning Bitcoin from the SEC’s purview, but bypassed any real obligation to change the guidelines regarding ICOs.
“Bitcoin and other cryptocurrencies have brought a new mindset to financial planning and investor involvement,” Gensler said. “I would work with other commissions to encourage new innovation, but also behind the scenes to ensure investor protection. For example, if something were a security, it falls under SEC securities regulation.”
Logically, the promise to treat values as values is quite tautological. Determining which cryptoassets qualify as securities, and especially investment contracts, has relied heavily on isolated or weird comments from SEC officials in recent years.
The SEC has also released a trio of no-action letters that have been scrutinized by the crypto world. The regulator has also taken various enforcement actions that have either domesticated or devastated the ICO market depending on your perspective.
The senator Cynthia Lummis, a well-known Bitcoin advocate, noted that the SEC has a reputation for being a “black hole for innovators”, especially when it comes to digital assets. “I believe that technology markets are constantly changing and evolving, and it is important that the SEC provide regulatory clarity.” “It is important to provide it either by guidance or by writing without action.”
Despite Gensler’s non-committal statements to today’s audience, the cryptocurrency industry has high hopes for his position, especially given his work as a teacher of blockchain technology courses at the Massachusetts Institute of Technology over the past several years. ± Os.
The members of the banking committee generally showed bipartisan support for Gensler’s nomination. Several Republicans on the committee took the opportunity to oppose plans to expand requirements for public corporations to disclose their environmental impacts, something Gensler supports, but there is little reason to believe that the net resistance will be sufficient to support Gensler’s confirmation, Stop becoming SEC chairman.