Gensler faces scrutiny over SEC’s crypto actions in Congress testimony

SEC Chairman Gary Gensler is facing increased scrutiny from Congress over the agency’s aggressive approach to crypto enforcement. 

Gensler is scheduled to testify before the House Financial Services Committee on September 24, while a second planned appearance before the Senate Banking Committee on September 25 has been postponed without explanation. 

These hearings come amid growing tensions between the SEC and the crypto industry. 

Data from Paradigm reveals that the SEC has launched 171 enforcement actions against the crypto sector since Gensler took office in April 2021, with a sharp increase in cases under his leadership. 

Brendan Malone, Policy Manager at Paradigm, commented, “Since Chair Gensler took office, the SEC has increasingly gone to court to establish its policy positions—confirming what the industry has long known regarding regulation by enforcement.” 

On September 23, Gensler and four other SEC commissioners—Caroline A. Crenshaw, Hester Peirce, James Lizarraga, and Mark Uyeda—released a joint statement ahead of their testimony. 

The statement focused on the SEC’s role in overseeing the $100 trillion U.S. capital markets, emphasising the importance of maintaining dominance over the U.S. dollar. 

The SEC also highlighted its enforcement division’s 784 actions in the 2023 fiscal year, which led to $4.9 billion in penalties. 

While the testimony did not directly mention crypto, a hearing memo reviewed by CryptoSlate revealed that the industry would be a central topic of discussion. 

The memo indicated that the SEC has prioritised digital assets but has yet to provide clear guidance on whether cryptocurrencies qualify as securities. 

This lack of clarity has left the digital asset space in regulatory limbo, creating uncertainty for its future in the U.S. market.