June 7, 2023

Esther Pierce criticizes Gary Gensler's actions as SEC chair

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Esther Pierce criticizes Gary Gensler's actions as SEC chair

SEC Commissioner Esther Pierce posted on the agency's website statements of disagreement with the regulatory policy pursued by Securities and Exchange Commission Chairman Gary Gensler.

SEC Commissioner Hester Peirce has issued further criticisms of Commission Chairman Gary Gensler's performance in his post.

“I do not agree that instead of statements aboutsupporting innovative technologies, as we have done in the past, the SEC is stagnating, proposing to force centralization, encouraging emigration, and welcoming the disappearance of new technologies,” Pierce said.

According to Pierce, the Commission, led byGenslera is aggressively expanding the scope of its regulation to address issues that don't exist. In particular, she is not happy that, in the understanding of the head of the SEC, the basic approach to exchange regulation is considered as something unshakable, leaving no room for new technologies or new ways of doing business.

Esther Pierce considers it unacceptable whenmandatory registration requirements by the SEC are declarative and sound like a threat to business. Especially in cases of impossibility of this registration, in view of the imperfection of the regulatory framework and the categorical rejection of the rule-making process.

Recall that on April 14, Gensler publishedkeynote speech, where he announced the future plans of the SEC to change the rules for the supervision and regulation of the cryptocurrency industry. According to Gensler, innovations should help investors and markets conduct financial transactions in a safe and controlled environment, including by subjecting cryptocurrency brokers to more stringent regulatory scrutiny and modernizing the criteria that define the concept of a digital asset exchange.

“Make no mistake – many cryptocurrenciesTrading platforms already fall within the exchange's current definition and are therefore required to comply with securities laws. The goal in passing securities laws was to regulate investments, in whatever form they were carried out and whatever they were called, ”Gensler said.

According to the head of the SEC, the implementation of the plan will allowfill the regulatory vacuum left by digital asset platforms that trade securities and derivatives but do not register as exchanges or brokerages. The plan includes rewording of digital assets, many of which Gensler claims have the characteristics of securities and fall under his jurisdiction.

Formerly Member of the House Financial Services CommitteeU.S. Representatives Warren Davidson said he intends to soon submit a bill to Congress to remove SEC Chairman Gary Gensler from office for disruptive actions as head of the agency.