SEC's Gensler Deserves Increased Congressional Scrutiny Regarding Crypto Regulation: U.S. Senator

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The convening of both the most crypto-relevant committees in the U.S. House of Representatives for an unprecedented joint meeting aimed to determine the optimal legislative strategy for digital assets. However, a leading Democratic member raised doubts about the necessity of drafting a bill by Congress.

On Wednesday, both the House Financial Services Committee and House Agriculture Committee convened an urgent hearing in response to the insufficient government oversight of the financial sector during a time of turmoil. The committee members in attendance included the Republican chairs, ranking Democrats, and subcommittee members, such as Representative Stephen Lynch (D-Mass.), who serves as the senior Democrat on the digital assets subcommittee. Despite discussions of potential legislation, Rep. Lynch expressed skepticism towards the idea.

“I’m worried that erecting a new law could be viewed as a light touch,” Lynch said in his opening remarks, and it could encourage other sectors to move their own financial products into the digital-assets space. “Creating a separate regulatory regime through legislation is not the answer.”

In his own brief opener, House Financial Services Committee Chair Patrick McHenry (R-N.C.) said, "the purpose here is to make law.” His Democratic counterpart, Rep. Maxine Waters (D-Calif.), seemed to agree, talking of the need to “quickly return to developing legislation together.”

Rep. Lynch's stance was closely aligned with that of Securities and Exchange Commission (SEC) Chair Gary Gensler, who frequently emphasizes that the current securities laws grant sufficient authority to his agency to enforce existing regulations on the cryptocurrency industry.

Rep. Lynch, who contended that "the majority of the industry has failed," emphasized that the SEC has a duty to safeguard investors and enforce a longstanding legal framework that many cryptocurrency businesses are disregarding.

“The problem is not regulatory ambiguity,” he said. “It is mass non-compliance.”

Source Coindesk