SEC Faces Bipartisan Criticism Over Cryptocurrency Regulation

Lawmakers from both parties challenge SEC Chair Gary Gensler on the agency's crypto policies during a heated Congressional hearing.

SEC Chair Gary Gensler and all five commissioners were grilled by the House Financial Services Committee regarding the agency's approach to cryptocurrency regulation.
Lawmakers, including both Republicans and Democrats, accused the SEC of regulatory overreach and lack of clarity in defining what constitutes a security in the crypto space.
The SEC's enforcement actions and the use of terms like 'crypto asset securities' were heavily criticized for creating confusion and uncertainty in the market.
Coinbase has taken legal action against the SEC, demanding new rules for digital assets, which the SEC has refused, insisting that existing laws are sufficient.
The debate over the SEC’s crypto policies coincides with significant political donations from the crypto industry, aiming to influence the upcoming November elections.