Republicans introduce bill forcing Gary Gensler to testify biannually

Senate Republicans have introduced a bill that would require the SEC chairman, currently Gary Gensler, to testify before Congress twice a year.

The move comes amid growing criticism of SEC Chairman Gary Gensler’s leadership and the agency’s approach to regulating the digital asset industry.

The proposed bill, the “Strengthening Main Street in America Act,” would expand provisions in the Dodd-Frank Act to require the SEC chair to attend the meeting every two years, Fox Business reported.

The decision came after Gensler’s hearing before the Senate Banking Committee was postponed.

A day earlier, the House Financial Services Committee placed Gensler under scrutiny, with members from both parties questioning Gensler’s approach to crypto regulation and the broader financial market.

Senate Banking Committee Ranking Member Tim Scott, one of the bill’s primary proponents, criticized the delay and saw it as an indication of a lack of accountability under Gensler’s leadership, according to Fox Business.

Scott and nine other Senate Republicans argued that more frequent testimony is essential to ensuring the SEC continues its mission of protecting investors, facilitating capital formation and promoting fair and orderly markets.

Gens vs. Crypto

Gensler, who was appointed by Biden, has been outspoken about his skepticism of crypto regulation and came out strongly against the FIT21 bill after it was passed in the House of Representatives.

The crypto industry is often skeptical and disappointed in Gensler, with many believing his strict enforcement approach and classification of most crypto assets as securities has stifled innovation and created legal uncertainty.

Gensler’s tenure has drawn bipartisan backlash, particularly over the SEC’s stance on digital assets.

Critics argue that the agency’s aggressive enforcement actions have created uncertainty in the cryptocurrency market. Those concerns were highlighted at a recent congressional hearing where five SEC commissioners, including Gensler, were pressed on their stance on cryptocurrency oversight.

Senate Republicans are seeking greater accountability and transparency in the SEC’s regulatory decisions with the Strengthening America’s Main Street Act. They want to ensure the SEC remains transparent as the financial landscape continues to evolve.

On September 24, the SEC charged TrueCoin and TrustToken with securities violations over unregistered offerings of TUSD and TrueFi, resulting in a settlement of over $500,000 in fines. The case adds to the SEC’s growing enforcement actions against crypto companies, with industry fines exceeding $7 billion since 2013.