SEC Chair Gensler Faces Congressional Scrutiny Over SAB 121 Crypto Rule

Sep 24, 2024, 02:26 PM

SEC Chair Gary Gensler is testifying before Congress this week, facing significant scrutiny from both Republican and Democratic lawmakers over the agency's approach to crypto regulation. The hearings, taking place on September 24-25, involve Gensler and the entire SEC Commission, including Commissioner Mark Uyeda, who are expected to address various issues, including the controversial SAB 121 crypto rule. This rule, which treats crypto as liabilities on balance sheets, has been criticized for potentially stifling innovation and driving digital asset projects overseas. Republican members, led by figures such as Patrick McHenry and Tom Emmer, have been particularly vocal, accusing the SEC of overreach and calling for the rule's rescission. SEC Commissioner Hester Peirce has also expressed concerns, stating that the agency should have admitted long ago that crypto tokens are not securities. The hearings, held by the House Financial Services Committee and the Senate Banking Committee, aim to provide clarity on the SEC's regulatory approach and its impact on the crypto industry.