Gary Gensler’s open warfare against the crypto ecosystem is apparently not over. The chairman of the Securities and Exchange Commission (SEC) has just asked for additional funding to continue tightening the screws on companies in the sector. But Congress might have something to say about it…
Gary Gensler asks for $2.4 billion
Gary Gensler made this funding request to the White House yesterday at a White House hearing. The SEC chairman justified the request with “the increased complexity of the capital markets… In particular the cryptocurrency sector:
“Rapid technological innovation in the financial markets has led to misconduct in new and emerging areas, not the least of which is the crypto sector. Responding to this requires new tools, new expertise, and resources. “
Hence the need for high funding according to Gary Gensler, who explains that the SEC’s resources are already stretched. The SEC chairman took the opportunity to reiterate his characteristic attacks on cryptocurrencies. In particular, he claimed that cryptocurrency investors were putting “their hard-earned money at risk, directing it to a highly speculative asset class. “
Gary Gensler will have to justify his actions to Congress
Whether this budget increase is granted or not, the crypto ecosystem may find relief in a future interview of the SEC boss with the US Congress. Gary Gensler will indeed have to justify his actions to the House Financial Services Committee on April 18.
NEW: Chairman @PatrickMcHenry confirms @SECGov Chair Gary Gensler will testify before the House Financial Services Committee on April 18th.
Republicans will hold @GaryGensler accountable for his flagrant disregard for the law, jurisdiction, and the APA.
– Financial Services GOP (@FinancialCmte) March 28, 2023
As a reminder, the Commission oversees the entire financial industry, so this includes the SEC’s scope of work. In addition, a subcommittee has been created specifically for anything related to cryptocurrencies. And this subcommittee is known to have representatives who are particularly open to cryptocurrencies.
For his part, the chairman of the Financial Services Commission reiterated that he wants more oversight from the SEC, especially in regards to how Gary Gensler has been tackling the cryptocurrency industry:
“This is going to be our first SEC oversight hearing. It’s going to be about his [Gary Gensler ed.] regulation and his approach to digital assets. “
The news could provide relief to a U.S. crypto ecosystem that has been particularly shaken in recent months in the face of the SEC’s onslaught. Some, like Coinbase, say the US regulator is cutting short any attempt at dialogue. More oversight from the regulator will therefore certainly be seen as welcome.
