‘Kudos To You For Answering a Different Question,’ Says U.S. Senator Grilling Gary Gensler

A squirmish Gary Gensler served as a punching bag for a number of frustrated pro-crypto senators during a hearing by the U.S. House of Financial Services committee today.

Senator Patrick McHenry, (R-NC), kicked things off by calling out Gensler for his “reckless agenda. " He doubled down on the agency’s clear regulation-by-enforcement approach and how the U.S. is losing ground to regions like Europe, which have passed comprehensive crypto regulations.

McHenry’s opening statement fired numerous shots and culminated with the prediction that Gensler’s legacy would be defined by “turning the renowned SEC into a rogue agency.”

The Chairman of the House Finance Committee wasn’t alone in grilling Gensler every time a pro-innovation senator had the floor. Rep. Tom Emmer (R-IN) took a swing, calling him the most historically destructive and lawless chairman in SEC history while cutting Gensler off mid-sentence after asking him a question.

Going down the list, Warren Davidson (R-OH) said it seems Gensler has abused his authority and asked if, during his meetings with the Federal Reserve “they discuss things like Operation Chokepoint 2.0?”

Operation Choke Point 2.0 is an allegedly concerted effort from several government agencies and private banking partners to cut off the cryptocurrency industry from operating through traditional financial pipelines.

Gensler claimed (with a straight face) he had “never heard that term.”

Dissent Within The Ranks

Not only lawmakers showed signs of discontent with Gensler’s leadership.

SEC Commissioner Hester Peirce, an advocate for a friendlier approach to the cryptocurrency industry, criticized her agency’s methods and suggested that they have “fallen down” on their duty as regulators.

“We’ve taken a legally imprecise view to mask the regulatory lack of clarity,” she said, adding that the decisions made by Gensler have obfuscated where their authority actually lies.

Grand Bargain on Stablecoins

Representative Maxine Waters (D-CA) was also present at today’s hearing, and called for a grand bargain on stablecoin legislation which has been sluggish to pass through Congress.

“Mr. Chairman, before the end of this year, I want us to strike a grand bargain on stablecoins and other long overdue bills,” she said. “Since 2022, we have been working for hours on end to reach an agreement and have each made concessions.”

Waters, who made the headlines for blowing a kiss at frizzy-haired crypto felon SBF at a Congressional hearing, called for making a deal “that prioritizes strong protections for our nation’s consumers… But I'll be honest, with less than three months left in the 118th Congress, we're running out of time to pass this."

Her words are notable because the Democratic caucus has offered the most obstacles to embracing and pushing sound crypto regulation.

Today’s hearing was cause for celebration among crypto enthusiasts but also highlights a troubling fact: much of the fate of the crypto industry in the U.S. comes down to the politics of SEC leadership.