The SEC continues to pressure companies in the market. This Tuesday (24), the Commission sued TrustToken and TrueCoin, responsible for the TUSD stablecoin.
Gary Gensler, chairman of the SEC, testifying to the US Congress. Source: YouTube/Reproduction.
Gary Gensler, chairman of the U.S. Securities and Exchange Commission, testified before the U.S. House of Representatives Financial Services Committee on Tuesday (24). One of the highlights was SAB 121, which deals with cryptocurrency investments.
Even with his position as SEC chairman under threat, as Donald Trump has promised to fire him if elected, Gensler has maintained his stance against the cryptocurrency sector, stating that he will not change his stance.
The SEC’s current management has been heavily criticized by both crypto companies and other government officials. In recent years, the agency has sued a range of companies, from exchanges to cryptocurrency projects, and many believe it is holding back the development of the industry.
Gary Gensler Says He Won’t Go Easy on Cryptocurrency
US Congressman Wiley Nickel questioned Gary Gensler’s stance on SAB 121, noting that the SEC “overstepped its authority” and “harmed investors.”
According to the congressman, he tried to contact Gensler several times to talk about the issue, but his office “completely ignored” his requests.
In short, SAB 121 is a bill that would prohibit highly regulated banks and funds from investing in Bitcoin and other cryptocurrencies. For Nickel, this is detrimental to both sides of the industry, both for those already positioned in this market and for those who want exposure but are denied access.
In response, Gary Gensler was firm in his stance, stating that cryptocurrencies have caused huge losses to their investors in the past.
“The chief accountant’s office has been issuing accounting bulletins to the staff. This is the 121st, because it’s the 121st in 50 years.”
“Public companies were asking questions about how to account for cryptocurrencies and whether they are a liability,” Gensler continued. “And what we found was that after back-to-back bankruptcies like FTX, Terraform, Celsius and Voyager, the bankruptcy courts have said that this is a liability of the company.”
“So I believe the accounting bulletin issued by the team helped public companies understand this.”
Congressman Nickel then claims that the SEC's decision was wrong and that it has made the cryptocurrency ecosystem less secure with SAB 121. Asked if he would change his mind, Gensler said "no," explaining that the bill is a protection for investors, as their funds would be separate from the company's funds.
In other words, in the event of the company going bankrupt, customers would have their balances safe and would not be affected.
Finally, the SEC continues to pressure companies in the market. This Tuesday (24), the Commission sued TrustToken and TrueCoin, responsible for the TUSD stablecoin.
