Rep. French Hill Slams SEC, Gary Gensler In House Financial Services Hearing

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Julia Smith

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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Last updated:

September 19, 2024 14:03 EDT

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On Wednesday, September 18, Congressman French Hill (R-AR) criticized the SEC’s regulatory approach under Gary Gensler during a House Financial Services Subcommittee hearing on Digital Assets, Financial Technology, and Inclusion, raising concerns about its impact on the cryptocurrency industry.

During the hearing, titled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets,” Hill criticized the agency’s regulation-by-enforcement approach to cryptocurrencies. He argued that instead of providing clarity, the SEC’s actions have led to more confusion and uncertainty in the market.

“Instead of providing legal clarity so that those who want to follow the law can do so, the Gensler SEC’s approach has injected even more confusion and uncertainty into the markets and for market participants and consumers alike,” Hill said. “How is this protecting the public?”

Hill referenced Gensler’s opposition statement to the Financial Innovation and Technology for the 21st Century Act (FIT21), which was released on the morning of the scheduled House vote.

He claimed that Gensler is “stuck on an island of his own making” following strong bipartisan support for the crypto bill.

Hill further expressed concerns that Gensler’s rigid regulatory approach could harm innovation and drive crypto businesses out of the United States.

“Whether it’s through politicized enforcement actions or by refusing to share its analysis around the legal classification of digital assets, the SEC has created a ‘lose-lose-lose’ situation for consumers, founders, investors, and everyone in between,” Hill continued.

The SEC’s Troubled Approach To Digital Asset Regulation

Following Hill’s remarks, the broader cryptocurrency community has also expressed dissatisfaction with Gensler’s approach.

Many in the sector believe the SEC has stifled innovation by failing to provide clear regulatory guidance.

Gensler is unpopular among cryptocurrency advocates, with Republican U.S. presidential candidate Donald Trump promising to remove him from office if elected in November.

“We will have regulations, but from now on, the rules will be written by the people who love your industry, not hate your industry,” Trump said during a speech at the Bitcoin 2024 Conference in Nashville.

Earlier this week, Trump criticized the SEC again during the launch of his family’s new cryptocurrency platform, World Liberty Financial.

“The SEC’s been unbelievably hostile,” Trump said, referring to the commission’s treatment of American crypto businesses. “If for some reason bad, bad things happen and we don’t win the election, those people that were under investigation and that are free as a bird right now, people that were being looked at in the crypto world, they will be living in hell because it will start the day after the election if they win.”