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Rep. Patrick McHenry says SEC’s latest move on crypto will hurt American innovation.

Rep. Patrick McHenry has said that SEC Chairman's intentions to have more control over the crypto ecosystem will hurt America
Rep. Patrick McHenry has said that SEC Chairman’s intentions to have more control over the crypto ecosystem will hurt American innovation.

In an official statement posted on the House Financial Services Committee website, Rep. Patrick McHenry questioned SEC Chairman Gary Gensler’s recent interest in increasing his regulatory powers to exert more control over the cryptocurrency industry. The battle to determine which will be the position of regulators towards the crypto industry has been making some noise from the last few months.

Rep. Patrick McHenry says SEC’s move will hurt American innovation.

Top Rep. Patrick McHenry (R-NC) stated, “Chairman Gensler’s latest move to ask Congress for jurisdiction over non-securities exchanges is a blatant power grab that will hurt American innovation.” Earlier, Sen. Elizabeth Warren shared a letter written by Gary Gensler, asking for more power to regulate the cryptocurrency industry. In the text, the SEC chairman assures that cryptocurrency investors are using platforms that are not “adequately protected” and argues that the financial regulator should regulate all centralized or decentralized exchanges. Gensler also urged prioritizing regulation on crypto trading, lending, and DeFi.

Patrick Henry considers Gensler’s approach far-fetched.

Rep. Patrick Henrt is strongly against the SEC’s approach, which he considers to be far-fetched. McHenry argues that there are diverse areas to explore in the vast world of cryptocurrencies, and Gensler was wrong to try to generalize to overreach its consequences. Earlier, the Representative introduced a bill, which was passed by the House on April 20, proposing the creation of a joint task force between the SEC, the CFTC, and other stakeholders to design regulatory policies that best serve both national interests and those of entrepreneurs interested in investing in the development of the crypto ecosystem.