Growing tensions between the SEC and Congress highlight a deepening divide over how the U.S. should regulate the cryptocurrency market.
With internal criticism and lawmakers pushing back, SEC Chairman Gary Gensler faces increased pressure to clarify the agency’s stance on crypto.
On October 2, a rare meeting saw all five leaders of the U.S. Securities and Exchange Commission (SEC) appear before Congress.
Led by SEC Chairman Gary Gensler, the nearly four-hour hearing, hosted by the House Financial Services Committee, turned into a heated discussion about the agency’s handling of cryptocurrency regulation.
Gensler, known for his tough stance on crypto, faced strong opposition from lawmakers, who criticized the SEC’s restrictive approach to the growing industry.
One key moment came when Rep. Warren Davidson (R-OH) pressed Gensler about “Operation Choke Point 2.0,” a rumoured government effort to suppress the crypto market.
Gensler, in a surprising response, claimed he had “never heard the term,” despite rumours that he had discussed the matter with the Federal Reserve Chair behind closed doors.
Rep. Tom Emmer (R-MN), a vocal advocate for cryptocurrency, did not hold back in his critique, labelling Gensler as the “most destructive Chairman” the SEC has seen.
Emmer and other lawmakers argued that the SEC’s aggressive regulations were stifling the growth of crypto innovation in the U.S.
Adding to the tension, SEC Commissioner Hester Peirce, often seen as a pro-crypto voice within the agency, openly criticized the SEC’s unclear approach to regulating digital assets.
“We’ve taken a legally imprecise view to mask the regulatory lack of clarity,” Peirce stated, calling for the agency to address its shortcomings. She further suggested that the SEC’s crypto agenda is largely driven by Gensler himself, saying, “The agenda is the Chairman’s agenda.”
