US Legislators Reject SEC Chair’s Multiple Hasty Rules and Hostility Towards Crypto Firms

The legislators also mentioned the SEC’s enforcement actions against crypto companies.

Gary Gensler, chairman of the Securities and Exchange Commission (SEC), has been placed in the hot seat by US legislators over hurried rulemaking. The chief of the SEC appeared to defend his regulatory agenda regarding crypto assets and the tempo of rulemaking in specific areas such as climate risk.

Under the leadership of Gensler, the SEC has proposed 46 regulations pertaining to the $100 trillion capital market. In addition to the hazards associated with climate change, these proposed regulations highlight the market structure and investment adviser conduct. The proposed market reforms, including strict rules for crypto companies, were the focus of the lawmakers’ criticism of the SEC chairman.

The House voiced its opposition to the SEC’s lawsuit against cryptocurrency firms. Since everything transpired during Gensler’s tenure, US legislators also allege that the SEC had refused to comply with Congress’s request for documents. According to them, the incumbent SEC chairman has proposed twice as many rules as his predecessors. Republican Congressman Patrick McHenry, a chairperson of the House Committee on Financial Services, stated:

“This raises grave concerns that the rulemaking process is being hurried, thereby compromising the quality of our securities laws and exposing them to unintended negative consequences.”

In his defense, Gensler stated that the United States capital markets are the safest and most robust in the world due to the regulations. As a result, updated rules and regulations are necessary, as new innovations pose a risk to investors. McHency, on the other hand, told Gensler that his strategy “drives innovation overseas and threatens American competitiveness.”

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