In a recent interview with CNBC, US Representative Ted Budd, a Republican from North Carolina, expressed his dissatisfaction with the Securities and Exchange Commission (SEC) and its chairman, Gary Gensler. He accused Gensler of overregulating the crypto industry and stifling innovation. He also said that Gensler should be fired in 2024, when the next presidential term begins.
Budd, who is a member of the House Financial Services Committee and the co-chair of the Congressional Blockchain Caucus, said that he was disappointed with Gensler’s testimony before the committee in October. He said that Gensler did not provide clear guidance on how the SEC would regulate crypto assets and platforms, and instead resorted to vague threats and enforcement actions.
Budd said that he was concerned about the impact of the SEC’s actions on the US crypto industry, which he said was a source of job creation and economic growth. He said that the SEC was driving away innovation and investment from the US to other countries that have more friendly regulatory environments. He also said that the SEC was hurting American consumers and investors who want to access the benefits of crypto.
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Budd said that he hoped that Congress would pass legislation to provide clarity and certainty for the crypto industry, and to limit the SEC’s authority over crypto. He said that he supported the Securities Clarity Act, which would amend the Securities Act of 1933 to exclude digital tokens from the definition of securities.
He also said that he supported the Eliminate Barriers to Innovation Act, which would establish a joint working group of regulators and industry representatives to study and recommend a regulatory framework for crypto.
He said that the SEC should provide clear guidance and rules for crypto businesses and investors, instead of relying on enforcement actions and lawsuits. He also urged the SEC to work with Congress and other stakeholders to develop a comprehensive legislative framework for crypto regulation.
Senator Budd is not alone in his views. Many crypto advocates and industry leaders have expressed similar concerns about the SEC’s approach to crypto regulation. They argue that the SEC is stifling innovation and growth in the crypto sector, which has the potential to create jobs, wealth, and social impact. They also point out that the US is falling behind other countries, such as Singapore, Switzerland, and Japan, that have adopted more proactive and supportive policies for crypto development.
The SEC, on the other hand, has defended its actions as necessary to protect investors and maintain market integrity. The SEC has said that it is applying existing securities laws to crypto assets, and that it is open to dialogue and collaboration with the crypto industry. The SEC has also warned that many crypto products and services may pose significant risks to investors, such as fraud, hacking, volatility, and lack of transparency.
The debate over crypto regulation is likely to continue as the industry evolves and matures. The challenge for both the SEC and the crypto community is to find a balance between innovation and protection, between flexibility and certainty, and between national and global interests. The future of crypto depends on how well they can achieve this balance.
Budd said that he believed that Gensler was not fit to lead the SEC, and that he should be replaced by someone who understands and supports crypto. He said that he hoped that the next president would appoint a new SEC chairman who would foster innovation and protect consumers in the crypto space. He said that he would work with his colleagues in Congress to ensure that Gensler is fired in 2024.