For several months, the SEC has been under fire for his actions. It failed to prevent FTX from collapsing and saved investors millions of dollars. It has a long running lawsuit against Ripple and a recently concluded lawsuit against LBRY.
US Securities and Exchange Commission (SEC) Chairman Gary Gensler has been criticized by Minnesota Senator Tom Emmer for his flawed “cryptographic information gathering efforts” and has been ordered to testify before Congress to explain the cost of their “regulatory failures.” Emmer stated that “we now know that Gensler’s crypto information gathering efforts were ineffective,” citing the demise of the Terra ecosystem, as well as the Celsius, Voyager, and FTX crypto platforms.
Does the SEC operate without authorization from Congress?
According to Eleanor Terrett, a journalist for Fox Business, the US SEC will face significant scrutiny from Congress in the coming months. According to the US Financial Services Committee, the fee has not been reauthorized since 2015.
During the Reauthorization process, Congress must review and make changes to a government agency, in accordance with the orders. This is done to ensure that the agency is set up to function efficiently while also achieving its stated goal. Congress makes sure that the agency receives adequate funding from the government to carry out its operations. The US SEC, on the other hand, is said to have received more than $2 billion in funding for fiscal year 2023. Meanwhile, the commission’s authority expired in 2015.
Gensler to testify
This means that SEC Chairman Gary Gensler will have to fight the Financial Services Committee’s investigation. Gensler will have to prove that the commission is working properly and that the government funding is justified.
The latest action by the Financial Services Committee to reauthorize the commission is an early indication of the GOP’s plan to significantly rein in the agency. The committee will monitor all aspects of the US Securities and Exchange Commission’s operations, activities, and other initiatives. This will be done to ensure that the agency is carrying out its mission of protecting investors.
In conclusion
The community is shocked that the SEC has taken such actions without being reauthorized. Some believe that the action taken against the SEC is well deserved. The SEC should reconsider its regulatory approach.
This post SEC under scrutiny: Congress to review regulatory overhang
was published first on https://coinpedia.org/news/sec-under-scrutiny-congress-to-review-regulatory-overreach/
