Securities and Exchange Commission (SEC) Chairman Gary Gensler is expected to face heavy questioning over plans to regulate the cryptocurrency markets when he appears before the Senate Tuesday (Sept. 14) at 10 a.m., CNBC reported.
Gensler is expected to address queries about bitcoin, stablecoins and other digital assets, answering questions from lawmakers in both U.S. parties on the Senate Banking Committee, according to the report.
Wall Street’s top regulator has said ahead of the hearing that some parts of the crypto market are operating outside of SEC regulatory frameworks, which protect investors and customers alike from illegal activity. Gensler, in prepared remarks, has said the SEC doesn’t “have enough investor protection in crypto finance, issuance, trading or lending,” and that it is comparable to the Wild West, the report stated.
He said the SEC wants to strengthen existing authorities, according to the report. It is also seeking Congressional approval to widen its jurisdiction to help address policing gaps for crypto.
Gensler is set to say the SEC needs help from lawmakers overseeing the offer and sales of crypto tokens, crypto trading and lending platforms, stablecoins, vehicles for investments involving digital assets or crypto derivatives, and custody of virtual assets, the report stated.
But he is expected to face heavy questioning from Sen. Pat Toomey, a ranking member of the committee, on why it has taken so long to support sanctions on the crypto markets, according to the report. Republicans in general have been testy over the lack of faster SEC action on what has been a burgeoning crypto market lately.
The hearing Tuesday will also be the first to happen since the SEC approved Nasdaq rules making it so companies listing on its exchanges must meet certain race and gender standards, the report stated.
In terms of regulations, crypto is still perplexing for global regulators. The European Securities and Markets Authority (ESMA) said earlier this month that despite the innovation, crypto might also constitute a threat due to crypto mining and related environmental concerns.
Read more: Crypto Is Innovative But Risky, European Regulator Says
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