Congress and SEC Clash Over Crypto Regulations as Coinbase Receives Green Light
Frustration with the SEC’s leadership extending beyond the crypto market, and what recent developments have highlighted this dissatisfaction for both US senators and investors? Gary Gensler’s recent hearing has tipped this growing feud. He was grilled left and right on the SEC’s stance on major crypto projects and there is also pressure to floor the crypto bill. Ritchie Torres took a jab at SEC’s role in his 5-minute speech, read on what he has to say.
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 amid growing criticism of the Securities and Exchange Commission’s (SEC) regulatory approach. One notable exchange occurred recently when Democrat Ritchie Torres, a congressman from The Bronx, challenged Gensler during a congressional hearing.
In response, Torres expressed concerns that the SEC’s interpretation could lead to arbitrary enforcement actions. His questioning revolved around whether an investment contract required an actual contract, suggesting that the SEC’s interpretation may be overly broad.
“the term “investment contract” has been interpreted too broadly”
SEC’s Response Was Vague
Like always Gensler’s response did not offer a clear answer to Torres’s query, and he emphasized the SEC’s broad authority under existing law. However, Torres pressed further, noting that Gensler could not cite a single case in which an investment contract lacked an actual contract.
Congress Not in line With SEC Regulatory Views
In the broader space, this exchange reflects the divide between Congress and the SEC on crypto regulation. While the SEC pursues legal action against major crypto platforms like Binance and Coinbase, members of Congress from both parties are adopting more pro-crypto stances. Figures like Patrick McHenry, Tom Emmer, and now Ritchie Torres are pushing back against Gensler’s approach. The Blockchain Association, Ryan Selkis, and a16z, Paradigm also support Coinbase’s motion.
While the Senate remains less receptive to crypto-friendly policies, Coinbase and other crypto advocates are directing their attention to key figures, such as Senator Sherrod Brown, who chairs the Senate Financial Services and Housing Committee. These lobbying efforts indicate a positive trend in engaging with lawmakers to shape crypto-related legislation.
Not All Bad With Coinbase
In other news, Coinbase International Exchange has received the green light from Bermuda’s financial regulator to offer non-US retail customers the ability to trade perpetual futures. Notably, these contracts don’t have an expiration date, providing continuous trading options. This move aligns with Coinbase’s efforts to expand its global presence, marking a step toward a regulatory framework that fosters innovation in the cryptocurrency space.
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