Congressman Patrick McHenry Calls SEC A “Rogue Agency” Ahead Congress Hearing

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As a seasoned crypto investor with over a decade of experience navigating the volatile and ever-evolving digital asset market, I find the recent statements by Congressman Patrick McHenry and Rep. Tom Emmer regarding the SEC particularly intriguing.

Congressman Patrick McHenry referred to the U.S. Securities and Exchange Commission (SEC) as a “rebel organization.” This remark was made prior to a congressional hearing where SEC Chair Gary Gensler, along with the five commissioners, were set to testify before the House Financial Services Committee. As chairman of this committee himself, McHenry also emphasized that the Commission should redirect its efforts from enforcement actions towards other matters.

Patrick McHenry Calls SEC A Rogue Agency

McHenry referred to the Commission as a renegade entity during an interview on CNBC prior to the SEC hearing. He made this comment while expressing concern over four years of poor management at the agency. The congressman stated that the purpose of the hearing is to bring clarity about what the Commission’s structure should be.

Patrick McHenry stated that the Securities and Exchange Commission (SEC) should strive for balance, focusing more on fostering capital formation instead of selectively filing lawsuits against individuals and generating media attention. This shift, according to him, will bring much-needed clarity to investors in the aftermath of the Gensler era.

During the interview, it emerged that the US presidential elections touched upon cryptocurrencies and capital markets when the congressman mentioned Donald Trump had shared his plans for them. Conversely, he pointed out that Kamala Harris has not explicitly expressed her stance on crypto in public yet. However, at a recent fundraising event, Harris hinted at boosting investments in the crypto sector if she is elected as President.

From different viewpoints, Congressman Patrick McHenry asserts that Gary Gensler is no longer suitable for leading the SEC. Even though cryptocurrency appears to be a non-partisan topic, the congressman highlighted that a substantial number of Democrats supported the FIT21 crypto bill, which he interprets as a “rebuff” towards Gensler. It’s also notable that Donald Trump has pledged to dismiss Gensler on his inaugural day if elected as the next President.

Rep Emmer Also Calls Out Gensler Ahead Of Hearing

Similar to Representative Patrick McHenry, Representative Tom Emmer openly criticized Chairman Gensler before the congressional hearing, expressing his intention to scrutinize Gensler and the SEC intensely. In a post on social media, he made it clear that he was eager to grill the SEC Chair, signifying his readiness to challenge Gensler and the Commission until they offer clear guidance for the crypto market.

Previously, Emmer expressed concern that the direction of the peer-to-peer digital economy should not be dictated by Gary Gensler’s authoritarian decisions. On the other hand, Senator Cynthia Lummis and Patrick McHenry advocated for a more welcoming regulatory landscape in the crypto sector, urging the SEC to withdraw Staff Accounting Bulletin 121 (SAB 121).

They argued that the rule places an excessive strain on cryptocurrency custodians, and they emphasized its potential for causing harm within the industry.

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2024-09-24 17:18