Congressmen Accuse Gensler of Bowing to Warren’s ‘Anti-Crypto’ Army, Exposing SEC’s Internal Divisions

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Today, in a heated hearing before the House Financial Services Committee, several members of Congress openly accused SEC Chairman Gary Gensler of politically motivated policy changes, including influence from what has been dubbed Sen. Elizabeth Warren’s “anti-crypto army.”

Congressmen Expose SEC’s Internal Divisions pic.twitter.com/dcMqGf2eSY

— Crypto Briefing (@Crypto_Briefing) September 24, 2024

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

Among these, Davidson criticized the SEC’s “Hotel California-type rules for cryptocurrencies, where, you know, they all have the ability or the direction to come and check in at any time, but never with the authority to leave with any approval or clarity.”

In a particularly tense exchange, Davidson asked Gensler about whether he was coordinating with other agencies to restrict market access for crypto-affiliated companies.

“Are you discussing things like Operation Choke Point 2.0, the way to block and restrict market certainty for crypto-affiliated companies?” Davidson asked.

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

The internal division within the SEC became evident 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 allegiance from both appointees and officials.

“We couldn’t have had a more historically destructive or lawless SEC chairman,” Emmer said, highlighting what he saw as inconsistencies in the SEC’s approach to cryptocurrency regulation.

Emmer also raised concerns about the influence of what some have dubbed “Elizabeth Warren’s crypto army,” suggesting that Gensler’s actions align closely with the senator’s known anti-crypto stance.

“You lured companies into complying with your demands, only to then hit them with enforcement measures,” Emmer charged, accusing Gensler of retaliating against companies that testified before the committee.

Critics say the agency has relied too much on enforcement actions instead of providing clear guidelines, creating what some describe as “regulation by enforcement.”

Gensler defended his record, saying: “We enforce the laws, and there are many.”

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