Crypto Clash in Senate
Senate Banking Committee Chairman Sherrod Brown, crucial for advancing crypto legislation, expressed strong reservations about the industry, backing SEC Chair Gary Gensler's strict oversight approach. During a Senate hearing, Brown highlighted prevalent issues in the crypto sector, singling out FTX's misconduct as the most pronounced. The senator emphasized the importance of the SEC's robust regulatory stance, commending their actions against crypto-related abuses.
Gary Gensler, during the hearing, reinforced his doubts about the digital asset sector, characterizing it as notably plagued with misconduct.
Sen. Cynthia Lummis, a crypto supporter, raised concerns over SEC's recent guidance, the Staff Accounting Bulletin 121, which instructs public firms to reflect crypto assets they hold for clients on their balance sheets. Such a mandate could burden banks, potentially discouraging them from entering the crypto space. Gensler responded, asserting that distinguishing crypto assets is challenging compared to traditional securities and that capital requirements for such assets fall under bank regulators' purview.
While Gensler's SEC has been proactive with crypto enforcement, they haven't neglected rule-making. The agency proposes regulations aligning crypto businesses with existing U.S. securities laws. In Congress, while there's momentum for crafting crypto-specific legislations, Brown's stance remains uncertain.
Loading Comments ...
Comments
No comments have been added for this post.
You must be logged in to make a comment.