In a recent statement, Congressman Warren Davidson expressed his concerns about the cryptocurrency industry’s regulatory scenario in the US, saying that specific actions have set it back. He said that Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), has highlighted structural issues within the SEC.
In an interview with Thinking Crypto, Congressman Davidson pointed out that the SEC’s approach to regulation has been inconsistent. He cited the SEC’s recent settlement with Kim Kardashian over promoting an unregistered security but noted that similar actions haven’t been taken against projects like EthereumMax. He criticized “regulation by enforcement,” where the SEC picks and chooses which projects to target.
Additionally, he raised concerns about the lack of regulatory oversight for various cryptocurrencies, including Luna, Celsius, and FTX. He questioned why the SEC hadn’t addressed these issues under Gensler’s leadership.
He said, “I think we’ve already missed out a lot. I mean, and look at some of the fraud cases that set the industry back. And that’s the other part is if you had, I mean, a perfect example, Gary Gensler has highlighted a problem. There’s a structural issue at the SEC.”
Despite his disappointment with the current state of crypto regulation and positive developments in Con, he spoke about progress. In July, the House Financial Services Committee passed a market structure bill that addressed some fundamental issues in the crypto industry, including stablecoins and self-custody protections. He explained that this was the first step in the legislative process, with more work needed to pass these bills into law.
When asked about the timeline for a total House vote on these bills, Congressman Davidson explained that there wasn’t a set date yet. He emphasized the focus on funding proposals to avoid a government shutdown.