Senate Republicans have introduced legislation that would require the SEC chair, currently Gary Gensler, to testify before Congress twice a year. This move comes amid mounting criticism of SEC Chair Gary Gensler’s leadership and the agency’s approach to regulating the digital asset sector.

The proposed bill, known as the “Empowering Main Street in America Act,” aims to extend provisions from the Dodd-Frank Act to include a mandate for the SEC chair’s biannual appearance. This follows a postponed hearing originally scheduled for Gensler before the Senate Banking Committee. The day before, the House Financial Services Committee scrutinized Gensler, with members of both parties questioning his approach to crypto regulation and the broader financial market.

Senate Push for Greater Accountability

Senate Banking Committee Ranking Member Tim Scott, a key advocate for the bill, criticized the postponement, viewing it as indicative of a lack of accountability under Gensler’s leadership. Scott and nine other Senate Republicans argued that more frequent testimony is essential to ensure the SEC maintains its mission of protecting investors, facilitating capital formation, and promoting fair and orderly markets.

Gensler’s Approach to Crypto Regulation

Biden-appointed Gensler has vocally expressed skepticism toward crypto regulation. He came out forcefully against the FIT21 bill after it was passed in the House. The crypto industry mostly views Gensler with skepticism and frustration. Many believe his strict enforcement approach and classifying most crypto assets as securities have stifled innovation and created legal uncertainty.

Gensler’s tenure has faced bipartisan pushback, particularly regarding the SEC’s handling of digital assets. Critics argue that the agency’s aggressive enforcement actions have caused uncertainty in the crypto market. These concerns were recently highlighted during a congressional hearing in which all five SEC commissioners, including Gensler, were pressed on their stance on cryptocurrency oversight.

SEC’s Recent Actions

On Sept. 24, the SEC charged TrueCoin and TrustToken with securities violations over unregistered offerings of TUSD and TrueFi, resulting in a settlement with fines totaling over $500,000. The case adds to the SEC’s growing enforcement actions against crypto firms, with industry fines surpassing $7 billion since 2013.

Senate Republicans are aiming for greater accountability and transparency in the SEC’s regulatory decisions with the Empowering Main Street in America Act. They want to ensure the SEC remains transparent as the financial landscape continues to evolve.

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