In recent days, Gary Gensler, the head of the Securities and Exchange Commission (SEC), didn’t hold back in his criticism of the cryptocurrency industry. He asserted that it’s riddled with fraud, misuse, and misbehavior, a stance he reiterated during his latest appearance before the House Committee on Financial Services.

Undoubtedly, this has created a storm on social media. Read on.

Gensler’s Testimony

On September 27, 2023, at 10 a.m. Eastern Standard Time, a live webcast titled “Oversight of the Securities and Exchange Commission” took place. During his testimony, Gensler boldly stated that “the majority of crypto tokens are subject to securities laws,” reinforcing the much-disputed position of the US SEC on cryptocurrency regulation.

This statement by Gensler further fueled the ongoing debate surrounding the regulatory framework for cryptocurrencies. Critics argue that such an expansive interpretation of securities laws could stifle innovation and impede the growth of the crypto industry. In contrast, proponents contend that increased regulation is vital to safeguard investors from potential risks linked to fraudulent activities in the crypto market.

His Silence is Getting Louder 

Additionally, he sent a prior notice of his intention to remain silent about pending legal matters, including the XRP case and the Grayscale spot ETF conversion decision. 

Gensler said that there was still work to be done with the SEC authorities on the organisation’s activities so far regarding the approval of spot Bitcoin exchange-traded funds (ETFs). 

This silence has left many speculating about the potential impact on the cryptocurrency market. Investors and industry experts are eager to hear Gensler’s thoughts and plans regarding the regulation of digital assets. Some believe that the lack of communication could simply be a strategic move to avoid any potential market manipulation. Regardless, the crypto community eagerly awaits further updates from the SEC chair on these critical matters.

Read More: “You Have to Stand Up to a Bully”: Ripple CEO Garlinghouse Celebrates Legal Victory

Elected Officials React 

US Representative Ritchie Torres’ post on X where Mr. Torres captioned “Gensler struggled to answer basic questions like whether an investment contract requires a contract. His evasions are deafening and damning.” 

Alderoty expressed his disappointment with the SEC Chair’s unprofessional behavior, stating that it is crucial for regulatory leaders to engage in meaningful dialogue and address concerns raised by industry professionals. 

Also Read: “The SEC Can’t Continue to Punish Crypto”: Coinbase CEO Slams Gary Gensler

Grabbing the opportunity, Stuart Alderoty re-posted Torres’ post and criticized Gensler. “For hours Mr. Gensler smugly evaded question after question (even laughing about how rich he is) until Rep. Torres took him out with a command of the law and a touch of South Bronx street sense. Gensler didn’t know what hit him until it was too late”, he says.