SEC is in a much bigger regulatory Scoop! The extremely anticipated SEC crypto listening to is about for September 18, as former officers put together to testify in opposition to the company’s dealing with of digital property.
The listening to, titled “Dazed and Confused: Breaking Down the SEC’s Politicized Method to Digital Property,” will study the SEC’s enforcement-heavy techniques and perceived overreach in regulating the crypto trade.
Fox Enterprise reporter Eleanor Terrett broke the information, highlighting that the total five-member SEC fee will testify collectively for the primary time since 2019. The next day, SEC Chair Gary Gensler will testify solo earlier than the Senate, including extra stress on his management.
What lies forward?
Former SEC Officers Take the Stand
Ex-SEC officers Dan Gallagher and Michael Liftik are among the many key witnesses within the listening to. Gallagher, presently Chief Authorized Officer at Robinhood Markets, served as an SEC Commissioner from 2011 to 2015.
Liftik, now a accomplice at Quinn Emanuel, was Deputy Chief of Workers to former SEC Chair Mary Jo White. Their insider views are anticipated to make clear the SEC’s inside decision-making and regulatory missteps underneath Gensler’s management.
Different witnesses embrace Teddy Fusaro, President of Bitwise, and Jennifer Schulp, Director on the Cato Institute, in addition to Lee Reiners, a lecturing fellow from Duke College. Collectively, they may tackle the broader implications of the SEC’s present regulatory method, notably its deal with enforcement moderately than clear steering.
Gensler Faces Scrutiny on A number of Fronts
Furthermore, Gensler’s management has been underneath hearth for his aggressive stance on crypto regulation. The SEC’s quite a few enforcement actions in opposition to crypto firms, mixed with an absence of readability on regulatory pointers, have drawn widespread criticism.
As MetaLawMan humorously famous on X, many are anticipating that Consultant Patrick McHenry will once more press Gensler on whether or not Ethereum is a safety or a commodity. In the meantime, there’s hypothesis that SEC Commissioner Hester Peirce, often known as “Crypto Mother,” might be positioning herself for a bigger function throughout the company.
Including to Gensler’s troubles is a separate probe initiated by Home Republicans into the SEC’s hiring practices. Allegations of political bias in recruitment have raised questions concerning the impartiality of the company, placing Gensler underneath much more scrutiny.
What’s Subsequent for Crypto Regulation?
The listening to is anticipated to be a significant turning level for crypto regulation within the U.S. With rising dissatisfaction over the SEC’s techniques, the testimonies might immediate vital modifications. Because the crypto trade awaits clear steering, the upcoming testimonies might reshape the way forward for digital property.