The United States Securities and Exchange Commission (SEC) and its Chairman, Gary Gensler, have faced severe criticism from various organizations and individuals, including politicians, for their approach towards the cryptocurrency industry. Ripple’s recent court victory against the SEC has further intensified the backlash against the regulatory body. Here is a list of some prominent politicians who have expressed their dissatisfaction with the SEC and their reasons for doing so.
1. United States Representative Warren Davidson was one of the first to voice his concerns about Gary Gensler’s anti-crypto campaign. Davidson criticized the SEC’s proposal to redefine the concept of an “exchange,” stating that it was another example of the agency’s mistreatment of the cryptocurrency sector. He even introduced legislation to remove Gensler from his position as Chair of the SEC.
2. Senator Cynthia Lummis, a strong advocate for Bitcoin, criticized the SEC for failing to provide clear legal guidance on differentiating securities from commodities in the crypto market. She expressed concerns that the lack of comprehensive crypto regulations in the USA could drive the industry offshore or underground.
3. US Congressman Patrick McHenry opposed Gensler’s reluctance to approve spot Bitcoin exchange-traded funds (ETFs), suggesting that it may be an attempt to stifle the growth of the crypto industry in America.
4. Ripple’s recent court win against the SEC has had a significant impact on the crypto landscape. A US judge ruled that most XRP sales do not qualify as securities transactions. Representative Ritchie Torres highlighted the SEC’s failure, under Gensler’s leadership, to issue clear rules and guidance on crypto assets. He questioned whether the SEC would now reconsider its aggressive stance against the industry.
5. Senator Lummis emphasized the need for Congress to establish a regulatory framework for crypto assets in light of the Ripple vs. SEC case. She mentioned a bill, co-introduced by her and Senator Kirsten Gillibrand, that aims to classify most digital currencies as commodities, similar to gold, silver, oil, and natural gas.
6. US Representative Dusty Johnson criticized Gensler’s approach to the crypto sector, stating that the court ruling against Ripple challenged his claim that almost every digital asset is a security. Johnson argued that the confusion caused by the ruling underscores the necessity for Congress to enact crypto legislation.
The criticism directed towards the SEC and Gary Gensler from these politicians reflects the growing discontent with the regulatory body’s treatment of the cryptocurrency industry. Ripple’s legal victory has further fueled the debate and highlighted the need for clear and comprehensive regulations to foster innovation and growth in the crypto space.
