According to Cointelegraph, French Hill, chairman of the U.S. House of Representatives Digital Assets, Fintech, and Inclusion Subcommittee, criticized SEC Chairman Gary Gensler for politicizing cryptocurrency regulation at a hearing on September 18, which led to market confusion and uncertainty.
Hill suggested alternative regulatory pathways such as the FIT21 Act and expressed support for the SEC to crack down on illegal activities, but opposed its abuse of enforcement power to hinder legitimate innovation.
Subcommittee member Stephen Lynch countered that the crypto industry's support for or opposition to candidates in the 2024 elections is the real politicization, noting that most digital assets are used for illegal activities.
Former SEC Commissioner Dan Gallagher called on Congress to legislate to address the SEC's "enforcement supervision" problem, saying it led to industry inconsistency. Congressman Wiley Nickel also criticized Gensler's approach for harming consumers, innovation and U.S. competitiveness.
The hearing comes 48 days before the U.S. election, the outcome of which could impact the leadership of the House Financial Services Committee and the Digital Assets Subcommittee.
