As the entire globe embraces crypto, the United States remains rather uncertain about the industry. From abruptly labeling digital assets as securities to making bearish statements about the market, the Securities and Exchange Commission [SEC] has managed to get itself into the crosshairs of the industry. Adding onto the same, SEC Chair Gary Gensler spoke about how additional legislation wasn’t required for crypto.
Following a House Appropriations Committee hearing on March 29, Gensler said the current laws “cover most of the activity that’s happening in the crypto markets“. This was particularly with regard to securities laws. He further added,
“If Congress were to act, though I don’t think we need these authorities, not to undermine inadvertently through definitions of what’s in or out, or in essence allowing for conflicts that we don’t allow.”
Additionally, Gensler said the same before the lawmakers as well. As seen, the crypto community continues to contest the assets that are categorized as security. Gensler said the SEC, governed by the House Financial Services, Senate Banking committees, and the courts, determines what can be deemed as a security asset. It isn’t cryptocurrency exchanges. It should be mentioned that several other American government representatives have been striving to introduce new rules into the industry. However, the SEC Chair mentioned, “I think many of the legislative vehicles would if adopted, would undermine the securities remit.”
Will the SEC Chair reinstate the same before the House Financial Services Committee?
Gensler is set to appear before the House Financial Services Committee on April 18. This was brought to light by HFSC chairman Patrick McHenry. McHenry hinted that the committee will inquire about the SEC’s approach to establishing rules and dealing with digital assets. With Gensler happy with the existing rules, the chances of new regulations being pitched before the HFSC was low.