Despite facing several recent setbacks in court, the United States Securities and Exchange Commission (SEC) Chairman Gary Gensler remains unwavering in his determination to assert the agency’s authority over the cryptocurrency industry.
Gensler believes that the SEC should play a pivotal role in regulating crypto and as such, he intends to convey this message to lawmakers on September 12 in a Senate Banking Committee hearing.
In his prepared speech, Gensler intends to make a compelling case for why the SEC should be the primary regulator for cryptocurrencies. Notably, the SEC has encountered a series of legal challenges in its attempts to assert jurisdiction over cryptocurrencies. These setbacks, however, have not deterred Gensler from his mission to bring digital assets under the regulatory umbrella of the commission.
The SEC chair’s commitment to overseeing the crypto space is rooted in his belief that cryptocurrencies pose significant risks to investors and the financial system at large. He argues that without proper oversight, the market could become a breeding ground for fraud, manipulation, and other illicit activities. As a result, Gensler sees it as the SEC’s duty to step in and provide the necessary safeguards.
SEC Faces Legal Defeat From Crypto Industry
Recall that while the SEC extended its review period to decide whether to approve or reject most of the spot Bitcoin ETF applications, Brad Garlinghouse, the CEO of Ripple (XRP) announced has plans for a proper victory party for members of its community to celebrate the partial win against the US SEC.
However, the regulator has decided to move forward with the appeal after the court approved its request to file an interlocutory appeal earlier last month.
Also, a U.S. Court of Appeals Circuit Judge Neomi Rao ruled in favor of Grayscale Bitcoin Trust (GBTC), a leading crypto asset manager in its lawsuit against the SEC over its Bitcoin Exchange Traded Fund (ETF) application. Judge Rao said that the SEC did not offer any explanation as to why Grayscale was in the wrong.
As such, the Judge ordered that GBTC’s petition for review be granted and the SEC’s order to deny the GBTC listing application be vacated.
LBRY Coming for the SEC
In the wake of several prominent victories within the crypto industry against the federal regulator, LBRY, the blockchain-based file-sharing and payment network has filed a notice of appeal to the U.S. Court of Appeals for the First Circuit.
Meanwhile, LBRY’s notice of appeal signals the firm’s resolve to contest the verdict issued by U.S. District Judge Vernon Broderick asserting that the firm had violated U.S. securities laws by conducting an unregistered offering of its native cryptocurrency, LBRY Credits (LBC).