U.S. Senator Tells Gary Gensler Crypto Desperately Needs Resources

Senator Patrick Hagerty grilled SEC Chairman Gensler over the agency's lack of prioritization of a “constructive industry.”

By: Pedro Solimano Loading...

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U.S. Securities and Exchange Commission Chairman Gary Gensler was put on the spot by Senator Bill Hagerty over the SEC’s lack of resources dedicated to the cryptocurrency industry.

Gensler appeared in a Thursday hearing before the Senate Committee on Appropriations.

“You’re not prioritizing staff or resources for areas that desperately need it,” said Hagerty, the Republican Senator representing Tennessee, pointing to the crypto industry. “This is an innovative and constructive industry that is getting pushed offshore,” he added.

Hagerty continued to reprimand Gensler – who has led the SEC with a clear anti-crypto agenda – and pointed to other jurisdictions that are crafting sensible regulatory frameworks for cryptocurrency companies. He was likely referring to MiCA in Europe, Hong Kong, and other regions that have been notably crypto-friendly.

“Other jurisdictions in other countries are setting up rules for their ecosystems,” the Senator said, adding that what happens in the U.S. with the SEC and the CFTC is constant roadblocks and a lack of certainty. “I don’t think that’s the result we want for America.”

Gensler on the Ethereum ETF

Instead of responding directly to Hagerty’s allegations, Gensler focused on the agency’s work with spot Ethereum ETFs, which were approved on May 23.

Gensler claimed that the instrument has already been approved, and the process with individual firms vying to offer it is “running smoothly,” but what’s pending is individual issuers disclosing and updating their registrations.

According to the SEC chairman, final approval should be granted by the end of summer in the Northern Hemisphere.

Crypto Is Becoming Increasingly Accepted In The U.S.

Although the SEC has been adamantly aggressive against players in the space, the tides are turning.

The de facto Anti-Crypto Army led by Senator Elizabeth Warren and the executive branch of the United States have shifted their staunch opposition to crypto into a stance of weary acceptance. The White House recently said it will not veto a recent crypto bill, in what constitutes a major win for the industry.

On the other side of the aisle, and the apparent trigger for a change in heart from Democrats, is Donald Trump’s pivot. The leading Republican presidential nominee has been increasingly favoring the crypto industry, claiming he would pardon Silk Road creator Ross Ulbricht and calling for all remaining bitcoin to be mined in the United States.

The industry, however, waits with bated breath to discover whether these are simply campaign promises or will actually come to fruition.