While U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler was in the hot seat at a Senate hearing on Tuesday, the most important crypto sentiments may have come from Sen. Sherrod Brown (D-Ohio), who tarred much of the industry as dangerous fraudsters.
“The problems we saw at FTX are everywhere in crypto – the failure to provide real disclosure, the conflicts of interest, the risky bets with customer money that was supposed to be safe,” said Brown, the Senate Banking Committee’s chairman, whose committee will probably have to agree to any crypto legislation to provide the industry a regulatory framework. “FTX was just the biggest and the ugliest.”
Without Brown, a path for a stablecoin bill or a new blueprint for U.S. crypto market oversight is unlikely in the near term, and the Ohio lawmaker praised Gensler’s agency for what the industry has complained is regulation-by-enforcement.
“I’m glad the SEC is using its tools to crack down on abuse and enforce the law,” Brown said.
Source: Gensler’s SEC Hearing Shows Key U.S. Senate Democrat Brown Digging in Heels on Crypto
