SEC Chairman Gensler Suggests Continued Oversight of Cryptocurrencies
On Wednesday, September 18, SEC Chairman Gary Gensler strengthened his position on cryptocurrency regulation in an interview with CNBC. Gensler emphasized the need to protect retail investors, stating:
“This space is rife with scammers, fraudsters and con artists. It always has been. This space is not inconsistent with the basic protections that are in the securities laws, which means that investors still need to have basic protections when they put something on an accounting ledger or a record ledger that we call the blockchain. […] So there is a lot of clarity in U.S. securities law that has been in place for 90 years.”
Notably, Gensler’s comments suggest that regulators remain committed to regulating the digital asset sector through enforcement.
Congress to Hear SEC Testimony on Regulatory Practices
The timing of Gensler's interview coincided with the U.S. House of Representatives Financial Services Committee announcing it would hold a full committee hearing titled Oversight of the Securities and Exchange Commission on September 24. Notably, this will be the first time all five SEC commissioners will testify before the committee since 2019.
Since the announcement, Financial Services Republicans have highlighted recent cases where the SEC has faced legal backlash for reckless schemes and abuses of power, including the agency's lawsuits against Debt Box, Grayscale and Ripple.
The scrutiny of SEC Chairman Gensler by U.S. lawmakers and the SEC’s oversight of the digital asset sector could be positive for cryptocurrency price movements. However, the SEC’s intention to continue targeting the cryptocurrency sector suggests a possible appeal of the SEC v. Ripple ruling. The SEC has until October 7 to file an appeal.
