Gensler is Driving Crypto to Communist China, Says Republican Congressman

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Republican lawmakers on Tuesday criticized US Securities and Exchange Chairman Gary Gensler’s approach to regulating the crypto world.

During a Tuesday hearing before the GOP-controlled House Financial Services Committee, the top regulator suggested the fast-moving digital asset industry was difficult to keep up with.

But lawmakers furiously attacked Gensler for not being clearer in his regulations. Representative Tom Emmer (R-MN) was particularly aggressive and claimed that US tech companies were suffering.

You were an incompetent cop on the spot, he said, before claiming that Gensler was pushing American businesses into the hands of the CCP (Chinese Communist Party).

He added: During your tenure at the SEC, how many rules has the SEC finalized that actually fit within the existing regulatory framework and are specifically aimed at the digital asset industry so that the market for cryptography can comply?

He then shut off the regulator. The answer is zero, he says.

Ahead of the hearing, lawmakers released an open letter criticizing the SEC for the lack of clear rules for crypto companies.

Following the collapse of mega digital asset exchange FTX last year, the SEC quickly targeted major US crypto brands.

Gensler, who took the job in 2021, says most coins and tokens fall under the definition of securities, but many say the body oversteps its authority.

In January, Genesis and Gemini were accused of offering unregistered titles. A month later, he fined Kraken $30 million for violating securities laws.

Then, last month, the Commission issued a Wells notice to Coinbase, the Americas’ largest crypto exchange, alleging that its staking products constitute unregistered securities.

And in its latest action yesterday, it alleged Seattle-based stock exchange Bittrex failed to comply with securities laws by failing to register with the financial watchdog in several areas. The body further claimed that major cryptocurrencies Dash and Algorand have features that resemble securities.

These actions have some politicians boiling, Republicans in particular, with some saying regulators’ stance on crypto will stifle innovation in the United States.

The regulator responded today saying it could use more manpower to regulate the crypto industry.

In terms of digital assets, we could definitely use more resources, he said. There are certainly more things to review and investigate than we have staff to do.

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