US Securities and Exchange Commission (SEC) Chairman Gary Gensler confirmed during testimony before the House Financial Services Committee that the agency will continue to insist that crypto platforms are required to comply with strict laws. Even so, the chairman of the Rep. Committee. Patrick McHenry argues that regulators' aggressive approach could drive such firms out of the United States and stifle innovation.
Gensler said he has never owned any digital assets, classifying them as "highly speculative." It should be noted that his position was not so negative at the beginning of his administration at the SEC.
Gensler faced heavy criticism from House Republicans on April 18, who claimed the SEC's actions had undermined America's status as a center of cryptocurrency innovation.
Chairman of the Rep. Committee. Patrick McHenry is of the view that, he also believes the agency should not rely on "regulation through enforcement," labeling that method as insufficient and unsustainable.
Gensler refutes the thesis that US crypto exchanges do not know how to comply with the law. He argues that there is a clear regulatory framework built many years ago, while such platforms are "just a bunch of intermediaries in this market" who have to follow those guidelines.
Regulatory uncertainty in the world's largest economy has been a stumbling block for some crypto organizations. Brian Armstrong, the CEO of Coinbase recently hinted that the platform might move if regulators don't enforce proper laws on the industry.
The SEC chairman also declared that he has never personally owned bitcoin or any other cryptocurrency, adding that the only digital assets he owns are his “bank account” and “brokerage account”. Although not asked for his views, he considered the asset class "highly speculative."
Gensler was not particularly hostile to the sector during his first month as head of the commission.
