SEC Chair Gary Gensler Slammed By Lawmakers For Handling Of Crypto Case: ‘Unethical And Unprofessional’
By Benzinga
A group of U.S. senators criticized the Securities and Exchange Commission over its handling of a cryptocurrency-related case, raising questions about the regulator’s broader enforcement practices.
What Happened: The senators on the Senate Banking Committee, including J.D. Vance (R-Ohio) and Cynthia Lummis (R-Wyo.), have expressed concerns in a letter to Chair Gary Gensler about the SEC’s conduct in a lawsuit against the blockchain project DEBT Box, reported CoinDesk.
The SEC’s lawyers were accused of misrepresenting evidence in court, leading to the freezing of DEBT Box’s assets. The letter, dated Feb. 7, suggests that this case raises questions about the integrity of the SEC’s other enforcement actions.
“It is unconscionable that any federal agency – especially one regularly involved in highly consequential legal procedures and one that, under your leadership, has often pursued its regulatory mission through enforcement actions rather than rulemakings – could operate in such an unethical and unprofessional manner,” the letter stated.
The SEC, which moved to dismiss the case last week, has assured that corrective actions are being taken to prevent similar incidents in the future.
Why It Matters: The SEC, under the leadership of Chair Gary Gensler, has been under scrutiny for its handling of cryptocurrency-related matters. In January, Gensler’s warnings about the risks associated with cryptocurrency investments were met with skepticism from the cryptocurrency community. Gensler’s subsequent approval of spot Bitcoin ETFs was also met with criticism, with some suggesting that he should have maintained a tougher stance.
Despite this, the SEC has maintained a strong stance on cryptocurrency enforcement. In November, the SEC had a notably active year in enforcing actions related to cryptocurrencies and digital assets, with 784 enforcement actions initiated, a 3% increase from the previous year.
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