Congressmen expose internal SEC division and accuse Gensler of bowing to Warren’s ‘anti-crypto’ army

Share this article

Today, in a heated hearing before the House Financial Services Committee, several members of Congress openly accused SEC Chairman Gary Gensler of driving the agency’s agenda on political grounds, particularly influenced by what has been called Senator Elizabeth Warren’s “anti-crypto army”.

Rep. Warren Davidson set the tone early, accusing Gensler of politicizing the commission and pointing out what he called “seven failures” of leadership.

Among them, Davidson criticized the SEC’s “Hotel California-style rules for cryptocurrencies,” where, you know, everyone has the ability or direction to come check in whenever they want, but never the authority to leave with any approval or clarity .

In a particularly tense exchange, Davidson questioned Gensler about potentially coordinating with other agencies to restrict market access for crypto-affiliated firms. “

Are you discussing things like Operation Choke Point 2.0, the way to lock down and restrict market safety for crypto-related firms?” Davidson asked.

Gensler replied, “I’ve never heard that term,” denying any knowledge of such coordinated efforts.

The internal division within the SEC became apparent when Commissioner Hester Peirce, known as “Crypto Mom” ​​for her pro-innovation stance, was asked about the agency’s priorities.

“The agenda is the president’s agenda,” Peirce said, suggesting a lack of collaboration among commissioners.

Rep. Tom Emmer accused Gensler of expecting political loyalty from both appointees and civil servants.

“We could not have had a more historically destructive or lawless SEC chairman,” Emmer said, pointing out what he saw as inconsistencies in the SEC’s approach to crypto regulation.

Emmer also expressed concern about the influence of what some have called the “crypto-Elizabeth Warren Army,” suggesting that Gensler’s actions align closely with the senator’s known anti-crypto stance.

“You would bait companies willing to comply, only to hit them with enforcement action,” Emmer charged, accusing Gensler of retaliating against companies that testified before the committee.

Critics say the agency has relied too heavily on enforcement measures rather than providing clear guidelines, creating what some describe as “regulation by enforcement.”

Gensler defended his record, saying, “We enforce the laws, and there are a lot of them.”

Share this article