SEC Chairman Faces Congressional Wrath Over Crypto Regulation

As a seasoned financial analyst with over two decades of experience, I find myself intrigued by the recent Congressional hearing involving the SEC leaders and their stance on cryptocurrency. The intensity of the four-hour session was palpable, especially when Rep. Warren Davidson’s questioning about “Operation Choke Point 2.0” caught Chairman Gensler off guard.


On October 2nd, a highly unusual event took place when the five heads of the U.S. Securities and Exchange Commission (SEC) were called to testify before Congress on a Tuesday.

As a researcher reporting on the event, I found myself in a heated four-hour discussion chaired by Chairman Gary Gensler. The House Financial Services Committee served as our venue, where lawmakers vocalized their apprehensions about Gensler’s stance on cryptocurrency. Each representative in turn posed challenges to Gensler, expressing their worries over the Securities and Exchange Commission’s (SEC) stringent policies towards the burgeoning crypto sector.

A notable instance occurred when Representative Warren Davidson (R-OH) questioned Gensler regarding “Operation Choke Point 2.0”, a phrase referring to government attempts to restrict the expansion of the cryptocurrency market. When Gensler replied, “I’ve never heard that term,” it left many in the room astonished, as rumors had circulated suggesting he had previously discussed this topic with the Chair of the Federal Reserve in private meetings.

Representative Tom Emmer (R-MN), a strong advocate for cryptocurrency, didn’t mince words. He openly expressed his viewpoint, stating, “The current Chairman of the SEC has been incredibly detrimental to the development of cryptocurrency within our nation,” indicating that SEC regulations are stifling the growth and expansion of cryptocurrencies in the United States.

In a direct exchange, I posed a seemingly straightforward query to SEC Chair Gary Gensler: Does a Yankees ticket fall under the category of securities?

Gensler’s stance on NFTs is that they are considered securities. To me, it seems there’s no legal distinction between a Yankees ticket granting access to a game and an NFT providing admission to a similar event, as both seem to share characteristics typically associated with securities.

— Rep. Ritchie Torres (@RepRitchie) September 24, 2024

As a crypto investor, I found Commissioner Hester Peirce’s remarks during the hearing particularly resonant. She openly criticized the SEC for their murky regulations regarding cryptocurrencies, stating that they’ve chosen a legally vague stance to conceal the lack of regulatory clarity. In her opinion, this is something that should have been acknowledged by the SEC a long time ago.

She also placed blame on the SEC’s tough stance squarely on Gensler, saying, “The agenda is the Chairman’s agenda.”

Read More

Sorry. No data so far.

2024-10-03 21:40