Two United States House of Representatives members have joined the group of lawmakers criticizing SEC Chair Gary Gensler’s approach to regulating digital assets. In a letter dated July 19, Reps. French Hill and Dusty Johnson proposed that legislation would be a more effective way to address regulatory concerns in the digital asset space, rather than relying on the SEC’s current approach of “regulating by enforcement.” Both lawmakers serve as chairs of subcommittees within the House Financial Services Committee and House Agriculture Committee, which oversee matters related to digital assets.
The letter emphasized that implementing a statutory framework through legislation would be instrumental in preventing future collapses of digital asset firms, as it would establish a clear regulatory process for firms to adhere to consumer protections. This proactive approach contrasts with relying solely on enforcement actions to penalize wrongdoers after the damage has already occurred
Hill and Johnson alluded to specific actions taken by the SEC, suggesting that they were strategically timed to align with related Congressional activities, possibly to generate extensive publicity and political influence. Furthermore, other members of Congress have raised questions about the timing of the SEC’s charges against former FTX CEO Sam Bankman-Fried, as it coincided with his scheduled testimony before the House Financial Services Committee in December 2022.
