US Lawmakers Clash with SEC Over Crypto Regulation

A Republican lawmaker heading a House subcommittee overseeing digital assets heavily criticized the SEC and its chair, Gary Gensler, for "inserting politics" into regulating crypto firms. The subcommittee chair suggested alternative regulatory routes for crypto, such as the FIT21 Act, while accusing the SEC of "enforcement abuse" against legitimate actors trying to follow the rules.

Crypto Industry's Influence on Politics

The subcommittee's ranking member, a Democrat, pushed back against the politicization claims, citing millions of dollars from the crypto industry moving to support or oppose candidates for congressional elections in 2024. He suggested that the industry was orchestrating resistance to crypto regulation in Congress.

Debate over SEC's Approach to Crypto

Former SEC officials testified at the hearing, with one calling for Congress to address the SEC's "regulation by enforcement" approach to crypto, which he claimed led to "inconsistency" in the industry. A Democratic lawmaker also accused Gensler of taking a "politicized" and "downright wrong" approach to crypto, while another suggested the SEC was focusing on a "small sliver" of the financial sector instead of the technology's potential benefits.

Source: https://cointelegraph.com/news/us-lawmakers-sec-enforcement-crypto-firms-politicized

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