In a letter sent Wednesday to the Securities and Exchange Commission’s (SEC) chairman, Gary Gensler, U.S. House of Representatives members French Hill (R-Ark.) and Dusty Johnson (R-S.D.) criticized the regulator’s approach to cryptocurrency regulation. The two Republicans suggested that the SEC’s actions were calculated for maximum publicity and political impact and do not protect the public.
While Congress works to close regulatory gaps, the SEC has opted to regulate by enforcement, Hill and Johnson wrote. This approach does not result in compliance and customer protection, but instead creates further confusion, as demonstrated by the recent summary judgement. The lawmakers were referring to Ripple’s partial victory in its court fight with the SEC.
The two representatives also mentioned a discussion draft proposing an overhaul of crypto regulation in the U.S., two bills introduced since 2021, and 15 hearings held in the last four years on the subject by their House committees. They argued that legislation would do far more to prevent future collapses of digital asset firms than enforcement actions and invited the SEC to productive engagement on such legislation.
Certain Commission actions, seemingly timed to coincide with related Congressional activity, which appears calculated for maximum publicity and political impact, Hill and Johnson wrote.