After Senate Banking Session, SEC Stays on Course
The Senate Banking hearing with Chairman Gensler today went as expected: Democrats generally praised his work while Republicans strongly opposed it on both substantive and procedural grounds. As a result, we expect the chairman to continue as he has in the wake of prior, comparable hearings – pretty much as he pleases and as the rest of the commission will support. This will clearly change if Republicans gain control of both Houses of Congress after the midterm. Unless or until it does, the SEC will continue its enforcement-focused approach to cryptoasset regulation and climate disclosures. Chairman Brown (D-OH) also confirmed our forecast: he will defend not only his jurisdiction, but also a much more stringent approach to crypto regulation than contemplated by the Senate Agriculture Committee’s bipartisan legislation.