During a discussion about cryptocurrency regulations, Congressman Warren Davidson recently expressed concerns about the actions of Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC). Davidson, a House Financial Services Committee member, highlighted the need for transparency and accountability within the SEC.
During the conversation with Thinking Crypto, Davidson also discussed possibly issuing a subpoena to Gary Gensler to obtain necessary documents and communications related to the SEC’s activities. He said that patience with Gensler’s leadership had worn thin, and a subpoena might be necessary to ensure transparency and cooperation.
Davidson believed that the SEC’s actions and lack of clear regulations have hindered the cryptocurrency industry’s growth. He cited fraud cases and the need for structural changes within the SEC as significant concerns.
The discussion also touched on the SEC’s previous stance on Ethereum, where a speech by former SEC official Bill Hinman was considered guidance by the industry. However, recent revelations have raised questions about the ethics and transparency of that decision.
He hopes that the recent court criticisms of the SEC’s actions in the Ripple vs. SEC case will make the SEC change its approach to regulating cryptocurrencies. He also believes that the SEC’s current method of using the Howey test as its primary guideline for determining if something is a security is too vague and that there should be clear laws specifically for digital assets. Davidson also said that having real contracts is crucial when the SEC claims something is an investment contract.
Regarding Central Bank Digital Currencies (CBDCs), Davidson argued against their implementation, suggesting that they could be used as tools for government control and coercion. He emphasized the importance of sound and strong money and expressed skepticism about the need for a U.S. CBDC.