The Security and Exchange Commission (SEC) has made several move to bring the crypto industry totally under its control over the years.
Since the new SEC chairman, Gary Gensler was appointed, the regulator has made series of move while the chairman has spoken extensively on protecting crypto investors and regulating the crypto space.
At a point, while the SEC chairman was addressing legislators he called for more funds to be plowed into the SEC to enhance their effort in regulating crypto.
Most recently, Gensler sent a letter to senator Elizabeth Warren demanding for more power such that the regulator can totally bring crypto under its control.
According to Patrick McHenry, a legislator, the ‘blatant grab of power’ will hurt American crypto innovation.
As the SEC continues to push to determine its position in crypto regulation some big politicians claim that the state has a duty to protect its citizens from the risks of an under-regulated industry, others influential people claim that excessive regulation is driving investors away.
One of the people querying Gensler’s move to totally put crypto under control is Rep Patrick. In an official statement posted on the House Financial Services Committee website, Patrick McHenry questioned SEC Chairman Gary Gensler’s recent interest in increasing his regulatory powers to exert more control over the cryptocurrency industry.
The legislator raised concerns over the move of the regulators. “Chairman Gensler’s latest move to ask Congress for jurisdiction over non-securities exchanges is a blatant power grab that will hurt American innovation,” he wrote.
What America crypto need that SEC is not talking about- Patrick
In lieu to Genslers recent letter to Senator Elizabeth calling for more power for the regulators to be able to totally regulate crypto.
Patrick said that should not be the priority of the SEC now.
Gensler in his letter recommended prioritizing regulation on crypto trading, lending and DeFi.
Patrick McHenry, however, is strongly against this approach, which he considers being far-fetched. McHenry argues that there are diverse areas to explore in the vast world of cryptocurrencies, and Gensler was wrong to try to generalize to overreach its consequences.
“We need smart policy, made through a transparent process, to ensure innovation and job creation continue in the U.S. We don’t need another backroom deal between Gensler and Elizabeth Warren,” Patrick said.
He proposed a joint task force between the SEC, the CFTC, and other stakeholders to design regulatory policies that best serve both national interests and those of entrepreneurs interested in investing in the development of the crypto ecosystem.
There’s been a lot of front and back about regulating crypto in the US. The latest which generated a lot of uproar was the Infrastructure Bill proposed by President Joe Biden.
The bill has led to series of controversies with speculations that crypto firms may have to pull out of America if the regulatory uncertainty around crypto industry persists.