The ultimatum highlights the growing pressure on the SEC to take a more transparent approach to its regulatory activities.
The US House Committee on Financial Services has given the Securities and Exchange Commission (SEC) Chair, Gary Gensler, an ultimatum to respond to its requests.
The committee is asking for access to internal documents concerning the SEC’s activities, especially about the agency’s proposed climate rule and charges against the former FTX CEO. Despite the congressional demands, Gensler had refused to provide the documents. Consequently, Congressman Bill Huizenga, Chairman of the Oversight and Investigations Subcommittee, voiced his apprehensions about the SEC’s lack of transparency and accountability.
Huizenga noted that it was inconceivable that the SEC was “struggling to process three requests from Congress in a timely and responsive manner” despite the manpower at its disposal. Despite the questions, the SEC Chairman stonewalled throughout the Capitol hearing.
US House Committee: SEC Should Be More Transparent
Apart from grilling Gensler about the SEC’s proposed climate rule, Huizenga also pressed Gensler for information about the charges against former FTX CEO Sam Bankman-Fried. Further, Congress asked for information from the SEC about its stance on cryptocurrency regulation.
Huizenga warned Gensler against using the Department of Justice as a shield to avoid further questioning. Already, there have been calls for Congress to subpoena the Commission to compel it to respond. This, according to various crypto community members, is because previous letters and hearings have not brought regulatory clarity to the crypto industry.
What the Ultimatum Means for the SEC
The ultimatum highlights the growing pressure on the SEC to take a more transparent approach to its regulatory activities. It also underlines the call for clearer and more concise guidelines for the industry.
Recall that Gensler has been under fire for suggesting that digital assets should be considered securities. The SEC chairman was billed to appear before Congress for his duplicitous stance on digital assets.
As crypto continues to evolve, regulators like the SEC need to keep up to protect investors and ensure market stability. The House Committee’s request for information shows that Congress is closely watching the SEC’s activities. It also suggests that Congressional oversight wants the regulator to act in the best interests of investors and the broader market.
An experienced writer with practical experience in the fintech industry. When not writing, he spends his time reading, researching or teaching.