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The U.S. Securities and Exchange Commission (SEC) found itself under fire during a congressional hearing as lawmakers and crypto leaders voiced concerns over the agency’s regulatory approach to the crypto industry.
What's the Scoop?
- Politicized Approach: In a hearing titled "Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets," critics, including former SEC Commissioner Dan Gallagher, expressed frustration with the agency’s actions. Gallagher, now a top legal officer at Robinhood, shared his company's struggles in complying with the SEC's crypto regulations and criticized the SEC for stalling registration processes for crypto firms.
- Unfair Targeting: Lawmakers such as
Rep. French Hill (R-Ark.) accused the SEC of using "regulation by enforcement" to unfairly target crypto companies despite their efforts to comply. - Dems Defend: Meanwhile, some Democrats, like Rep. Stephen Lynch (D-Mass.), defended the SEC, emphasizing the need for crypto firms to follow established rules.
Bankless Take:
The hearing underscored the growing divide over how crypto should be regulated in the U.S. With pressure mounting on the SEC for clearer guidelines, the debate between fostering innovation and enforcing compliance is likely to intensify. Clarity will be key for the future of crypto in the U.S. as lawmakers and regulators seek common ground.
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