US lawmakers propose SEC chair consider legislation, not enforcement approach to crypto

US lawmakers propose SEC chair consider legislation, not enforcement approach to crypto

July 19. 2023

By Turner Wright

Reps. French Hill and Dusty Johnson suggested the SEC may have undertaken certain actions on crypto “seemingly timed to coincide with related Congressional activity."

Two members of the United States House of Representatives have added their names to a list of lawmakers criticizing Securities and Exchange Commission (SEC) Chair Gary Gensler’s approach to digital asset regulation.

In a letter to Gensler dated July 19, Reps. French Hill and Dusty Johnson suggested legislation was a more effective approach to addressing regulatory issues in the digital asset space rather than the SEC’s position to "regulate by enforcement." The two lawmakers are the respective chairs of subcommittees in the House Financial Services Committee and House Agriculture Committee that examine digital assets.

“Legislation would do far more to prevent future collapses of digital asset firms than enforcement actions,” said the letter. “A statutory framework would establish a process for firms to come into the regulatory parameter and comply with consumer protections, rather than relying on enforcement actions to punish a bad actor after the damage has already been done.”