US Senator Says “Terrible Environment” Is Driving Crypto Firms Out Of The US

Republican Senator Bill Hagerty said a lack of regulatory clarity is forcing crypto companies out of the US.

“It is a terrible environment,” Hagerty said at a Cato Institute event onSept. 7, adding that crypto companies are shifting to overseas locations with more favourable regulatory frameworks.

Hagerty decried the Securities and Exchange Commission chair Gary Gensler’s regulation-by-enforcement strategy, admonished him for allegedly approaching crypto exchange Binance to serve as an advisor, and slammed central bank digital currencies, which he said would make the US more like China in enabling it to police the movement of funds.

The call for regulatory clarity comes as the US securities regulator continues to take enforcement action against the crypto industry.

Hagerty is one of the leading voices on crypto in the US Senate. In March, he wrote a letter to the Federal Reserve Chair Jerome Powell and other bigwigs in the US finance sector, saying regulatory activity against crypto firms “seems disturbingly reminiscent of Operation Choke Point.”

Hagerty Confused By Gensler’s Criticism Of Crypto

The US senator wants the SEC Chair Gary Gensler summoned for more oversight hearings by the Senate Banking Committee, and said he’s confused by Gensler’s criticism of the crypto industry given that he previously taught a blockchain course at MIT.

Hagerty further expressed skepticism with the appointment of Saule Omarova to the Office of the Comptroller of the Currency, criticizing his advocacy for a digital dollar at a time when many US banks were collapsing. “Looking for a crisis to then try to advocate for something – that would be very concerning,” he opined.

US Legislators Pile Pressure On The SEC

US legislators have become more vocal about the SEC’s need to establish a comprehensive regulatory framework for the industry.

Republican Patrick McHenry, the House Financial Services Committee Chair, has said Gensler’s “crusade against the digital asset ecosystem is falling apart” after Grayscale’s landmark legal win against the commission last week.

SEC Chair @GaryGensler's crusade against the digital asset ecosystem is falling apart under scrutiny from the courts.

This is yet another example of why a comprehensive regulatory framework, like the FIT for the 21st Century Act, must be made law.https://t.co/HI3wkFAsMm

— Patrick McHenry (@PatrickMcHenry) August 29, 2023

McHenry has tabled several crypto-related bills, the latest seeking to outline the precise responsibilities of the SEC and the Commodity Futures Trading Commission (CFTC) in regulating crypto.

Rep. Warren Davidson echoed McHenry’s remarks but in a more forceful rebuke of the commission.He said opined that Grayscale’s win was more evidence that Gensler needed to be fired.

More evidence that Gary Gensler’s actions at the SEC are arbitrary and capricious. #FireGaryGensler https://t.co/1qYVnki8ja pic.twitter.com/IG2t6i9V40

— Warren Davidson 🇺🇸 (@WarrenDavidson) August 29, 2023

Former Senator Pat Toomey supported the court’s decision to term the SEC’s ruling on Grayscale’s ETF as “arbitrary and capricious.”

The Court of Appeals for the District of Columbia today upheld the rule of law and properly served American consumers by vacating the “arbitrary and capricious” decision of the SEC denying Grayscale’s application to convert its Bitcoin Trust to an ETF. https://t.co/SIpINpwDUW

— Pat Toomey (US Sen. ret.) (@SenToomey) August 29, 2023

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