In today’s U.S. Senate Banking Committee hearing on SEC oversight, only climate change disclosures took up more time than the topic of cryptocurrency. Senator Toomey gave SEC Chair Gary Gensler a grilling. He chastised Gensler for the lack of enforcement against bankrupt crypto lending platforms Voyager and Celsius despite taking action against BlockFi. And he said the SEC’s lack of clarity over crypto regulation means Congress needs to take action.
“Given the novel nature of these tokens, really, Congress ought to step in and provide clarity,” said Toomey. “In particular, we need to revisit the definition of security as part of a larger effort to tailor a regulatory framework that is calibrated to the unique risks and activities of the crypto market.”
Gensler later said, “the definition of securities should be the exclusive remit of these two committees (House and Senate) and the agency that you set up. If we end up with multiple federal agencies defining what a security is, and another agency tries to define it, it could undermine what we are doing.”
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