Gensler testimony — Crypto enforcement actions driven by “wide-ranging noncompliance”
The United States House Financial Services Committee will hear how the Securities and Exchange Commission is changing its oversight and rules to keep pace with technological advancements, including cryptocurrencies and artificial intelligence.
SEC Chair Gary Gensler is set to outline how the U.S. securities regulator is updating its rules to align with “technology and business models of the 2020s.” As is customary, Gensler’s opening remarks have been published ahead of the Sept. 27 hearing, outlining the SEC’s wider oversight of securities and exchanges in the United States.
There is particular interest in the SEC’s approach to the cryptocurrency sector, which has copped criticism for its “regulate-by-enforcement” approach that has been criticized for quashing innovation and adoption in America.
Related: Ripple CTO says ‘tide is turning’ on US regulatory environment
Gensler will directly address two areas of emerging technology, namely predictive data analytics and cryptocurrencies. The SEC chair is set to stress that investors and issuers involved in “crypto asset securities markets” deserve protections afforded by securities laws.
Referring to the establishment of the 1933 Securities Act, Gensler said that the U.S. Congress made a decision to include a list of more than 30 items in the definition of a security, including the term “investment contract.”
Gensler is set to tell the House Financial Services Committee that the SEC’s view that most cryptocurrencies are subject to securities laws also necessitates that intermediaries such as exchanges, brokers and dealers must comply with these laws as well.
The SEC chair suggests that the wider industry has been guilty of “wide-ranging noncompliance with the securities laws,” which
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