Current crypto legislation 'undermines' the SEC, Gensler says

Quick Take

  • Gensler criticizes main crypto legislation before Congress, with an eye to the role of FTX in crafting that legislation.
  • “There’s some legislation on the Hill I do not think meets the test,” Gensler said.

Current legislation undermines the authority of the Securities and Exchange Commission, Chairman Gary Gensler said in an address to the Healthy Markets Association today. 

"As Congress looks at this field, as Congress thinks about it, it’s really important here not to undermine our hundred trillion dollar capital markets. Not to pass a legislative vehicle that undermines these time-tested important thoughts," Gensler said of securities laws. 

Gensler alluded in all but name to the role of FTX CEO Samuel Bankman-Fried in promoting that legislation, particularly the Digital Commodity Consumer Protection Act currently with the Senate Agriculture Committee. 

“There’s some legislation on the Hill I do not think meets the test," he said. "I think it undermines the securities laws. Just to note, some of that legislation was promoted by some of the same folks that failed in the last day or two. And you sort of wonder why. Because it was too light touch. So we’re going to continue what we’re doing.”

That legislation reserves greater authorities over crypto markets for the Commodity Future Trading Commission, the U.S.'s other markets regulator, which Gensler chaired during the Obama administration. “As much admiration as I have for our sibling agency, this is the agency, our agency, that looks after our securities,” he said. 


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