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    Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Congress and SEC Clash Over Crypto Regulations; Chair Gensler Grilled

Story Highlights
  • Dissatisfaction with SEC leadership is growing among US senators and investors.

  • Coinbase is gaining support from influential leaders in the US Congress for its fight against the SEC.

  • This growing rift between Congress and the SEC is likely to have a significant impact on the future of crypto regulation in the US.

The dissatisfaction with the leadership of the SEC extends far beyond just the the crypto market. Recent developments have brought this discontent to the forefront, drawing concern from both US senators and investors. Gary Gensler‘s recent hearing has amplified this growing feud. He was grilled left and right on the SECโ€™s stance on major crypto projects and there is also pressure to floor the crypto bill.

Ritchie Torres took a jab at SECโ€™s role in his 5-minute speech. Here’s what he had to say.

Gensler is Confronted

After Coinbase stood high against the SEC and threatened to go Supreme Court for delaying crypto regulations, it is gaining a streak of support from influential leaders in the U.S. Congress. One notable exchange occurred recently when Democrat Ritchie Torres, a congressman from The Bronx, challenged Gensler during a congressional hearing.

In his inquiry, Torres expressed concerns that the SECโ€™s interpretation could lead to arbitrary enforcement actions. His questioning revolved around whether an investment contract required an actual contract, suggesting that the SECโ€™s interpretation may be overly broad. 

โ€œThe term “investment contract” has been interpreted too broadlyโ€ 

The Response Wasn’t Satisfactory

Like always, Gensler’s response failed to provide a clear answer to Torres’ query. Instead, he emphasized the SEC’s extensive authority under existing law. Undeterred, Torres pressed further, highlighting Gensler’s inability to cite a single case in which an investment contract lacked a concrete agreement.

This is Now Congress vs SEC

This exchange between Torres and Gensler mirrors the growing rift between Congress and the SEC regarding crypto regulation. While the SEC continues its legal battles against major crypto platforms like Binance and Coinbase, members of Congress from both political spectrums are adopting increasingly pro-crypto stances. Figures such as Patrick McHenry, Tom Emmer, and now Ritchie Torres are pushing back against Gensler’s approach. Additionally, support for Coinbase’s cause has poured in from entities like the Blockchain Association, Ryan Selkis, a16z, and Paradigm.

Although the Senate remains less receptive to crypto-friendly policies, Coinbase and other crypto advocates are redirecting their efforts towards key figures, including Senator Sherrod Brown, who chairs the Senate Financial Services and Housing Committee.

Coinbase is Regaining Ground

In some positive news, Coinbase International Exchange has received the green light from Bermudaโ€™s financial regulator to offer non-US retail customers the ability to trade perpetual futures. Notably, these contracts donโ€™t have an expiration date, providing continuous trading options. This move aligns with Coinbaseโ€™s efforts to expand its global presence.

Read More: โ€œThe SEC Canโ€™t Continue to Punish Cryptoโ€: Coinbase CEO Slams Gary Gensler

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