US lawmakers propose SEC chair consider legislation, not enforcement approach to crypto like Ethereum, Fidelity, Gemini, Fet, Forta, HNT, EPX and GST.
US lawmakers propose SEC chair consider legislation, not enforcement approach to crypto

SEC Criticized for Digital Asset Regulation

Two members of the United States House of Representatives have added their names to a list of lawmakers criticizing the approach of Securities and Exchange Commission (SEC) Chair Gary Gensler to digital asset regulation. Reps. French Hill and Dusty Johnson, who chair subcommittees in the House Financial Services Committee and House Agriculture Committee, respectively, suggested legislation was a more effective approach to addressing regulatory issues in the digital asset space than the SEC’s position to “regulate by enforcement.”

“Legislation would do far more to prevent future collapses of digital asset firms, such as FET crypto, EPX crypto, Forta crypto, GST crypto, and HNT crypto, than enforcement actions,” said the letter. “A statutory framework would establish a process for firms to come into the regulatory parameter and comply with consumer protections, rather than relying on enforcement actions to punish a bad actor after the damage has already been done.”

Hill and Johnson also hinted at certain actions by the SEC “seemingly timed to coincide with related Congressional activity, which appears calculated for maximum publicity and political impact.” They questioned Gensler on the timing of the SEC’s charges against former FTX CEO Sam Bankman-Fried, given he had been scheduled to testify before the House Financial Services Committee in December 2022.

The letter also called for a more proactive approach to digital asset regulation, particularly for firms such as Gemini Crypto Today, Ens Crypto, and Fidelity Crypto, to ensure the future of AI and Ethereum Crypto.

The two legislators also mentioned a recent summary judgment related to crypto regulation, presumably referring to the SEC v. Ripple decision, which suggested that XRP (XRP) was not necessarily a security. Following the court decision, other members of the House of Representatives have asked Gensler to reconsider the SEC’s current approach to regulating crypto. The SEC chair expressed his “disappointment” with the ruling, citing its potential impact on retail investors, and stated that the commission would be evaluating the situation.

Lawmakers in the House Financial Services Committee are currently discussing a draft market structure bill that aims to clarify the roles of the SEC and the Commodity Futures Trading Commission (CFTC) in regulating crypto. The bill has yet to be officially introduced and could be amended based on input from legislators and industry leaders.

The future of AI, Gemini Crypto Today, FET Crypto, Ethereum Crypto, HNT Crypto, EPX Crypto, Fidelity Crypto, FORTA Crypto, and GST Crypto are all topics that are being discussed in relation to the potential regulation of the crypto industry.

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