An excerpt shared by Twitter user @801_XRP from a recent meeting by the US Senate Banking Committee on its hearing of the crypto crash shows some lawmakers have expressed concerns over the regulatory issues in the sector.
The committee members stated that the SEC has yet to properly oversee the crypto space as investors lose billions of dollars.
Using Hostile Attempts To Enforce Laws
The tweet by the XRP enthusiast features video extracts showing two committee members, Senator Thom Tillis (from North Carolina) and Senator Tim Scott (from South Carolina), discussing the lack of regulation in the crypto industry. The lawmakers spoke about the absence of rules which has become the most critical issue.
They referenced the crash of several crypto exchanges and billions of dollars lost by investors. In particular, the senators mentioned the aggressive approach employed by Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), in his attempts to regulate the digital asset space.
They also discussed other topical issues, such as stablecoin regulation and whether the SEC and the Commodity Futures Trading Commission (CFTC) should collaborate in their oversight functions. According to Senator Scott, the regulatory agencies in the United States have succeeded in disrupting the crypto space in their attempts to ensure compliance.
The committee revealed that it had been flooded with calls to provide the necessary suggestions for regulatory watchdogs to have the right tools to supervise the sector. Senator Scott further regretted the absence of the SEC chair during the latest hearing and said that the committee would like him to testify before September.
Disagreeing With SEC’s Method
According to Senator Scott, the regulators have already permitted business in the crypto space without providing the players with the appropriate guidelines. As a result, there have been massive failures in the sector which the appropriate committee must address.
Scott added that had the SEC provided the proper regulations aside from its aggressive approach to enforcing rules, the massive crashes that occurred last year involving Celsius, BlockFi, Terra Luna, FTX, and others could have been avoided.
For his part, Senator Tillis stated his concern is over Gary Gensler’s method of regulating the crypto ecosystem. He added that Gensler must not think he has full authority to implement a regulatory framework without involving the sector’s and the legislature’s participants.
According to him, the SEC chair has been moving too fast and has made expensive mistakes in implementing rules. Tillis believes the US Congress would step in and establish a regulatory basis for the digital asset industry.
Thus, both Senators call on Congress to make a move toward ensuring that a comprehensive guideline is enacted for the sector. Many industry players have accused the SEC of its high-handedness in enforcing regulations, citing its long-running court battle with Ripple Labs.
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