SEC Chair Facing Congress Pressure Over Crypto Industry Rulemaking

• The US Congress is questioning SEC Chairman Gary Gensler’s recent rulemaking in the crypto space, dubbed “Operation Choke Point 2.0”.
• Patrick McHenry, chairman of the Financial Services Committee, has called for Gensler to testify before the US Congress on April 18th to justify his actions.
• Representative Warren Davidson and other pro-crypto members are encouraging a bipartisan #FireGary movement in response to the SEC’s stance on crypto regulations.

SEC Chair Under Fire from US Congress

The US Securities and Exchange Commission (SEC) has been taking an aggressive stance against the crypto industry since its collapse of FTX in November 2022. Now, the US Congress is calling out SEC Chairman Gary Gensler and demanding that he publicly explain his actions towards regulating digital assets at an upcoming hearing.

Congressional Oversight of Crypto Regulations

Chairman of the Financial Services Committee, Patrick McHenry, recently announced that Gensler will be testifying before Congress on April 18th for the first time about his regulatory approach towards cryptocurrencies. In January 2023, Henry also established a Digital Assets Subcommittee to address any gaps in regulation between traditional financial services and digital currencies within the House Financial Services Committee.

Bipartisan #FireGary Movement

In response to Gensler’s decisions concerning cryptocurrency regulations, Representative Warren Davidson is leading a bipartisan #FireGary movement amongst other pro-crypto members of congress. The hashtag was created to encourage a unified voice from both sides of party lines regarding their discontent with current policies enforced by the SEC chairmen.

Wells Notice Issued To Coinbase

Recently, Wells Notice was issued by securities regulators to crypto exchange Coinbase stating that some digital assets listed on their platform violated existing securities laws in America. This move further reinforces why there is such an outcry for greater oversight into how cryptocurrency regulations are enforced by those in charge at the SEC.

Conclusion

As tensions rise between lawmakers and regulators within America’s developing crypto industry, it remains unclear what will come out of this congressional hearing with Gary Gensler next month or whether any changes will be made as a result of this public discourse. However what can be taken away from these recent events is that criticism towards current practices is growing louder – both inside and outside Washington D.C..