Former SEC Officials to Testify on Agency’s Crypto Regulation at Congressional Hearing

Former senior officials from the U.S. Securities and Exchange Commission (SEC) are preparing to testify at a congressional hearing scrutinizing the agency's approach to regulating cryptocurrencies.

The hearing, titled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets,” is scheduled for September 18 at 10 a.m. EST.

The House Financial Services Committee, led by GOP members, is organizing this session to review the SEC’s regulatory practices, especially under the current leadership of Chair Gary Gensler. Key witnesses include Dan Gallagher, Chief Legal Officer at Robinhood Markets and a former SEC Commissioner, and Michael Liftik, Partner at Quinn Emanuel Urquhart & Sullivan, LLP and former Deputy Chief of Staff to SEC Chair Mary Jo White. Their insights are expected to reveal internal operations and potential regulatory errors made by the SEC.

Other witnesses include Teddy Fusaro, President of Bitwise, Jennifer Schulp, Director of Financial Regulation Studies at the Cato Institute, and Lee Reiners, a Duke University lecturer. Their testimonies will likely address concerns over the SEC’s enforcement-heavy approach and alleged political motivations behind its regulatory actions.

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The hearing comes amid criticism from both the crypto industry and Congress, with allegations that the SEC’s regulatory actions have been excessively aggressive and lacking in clear guidelines. Additionally, Gary Gensler is under investigation by House Republicans over claims that the SEC’s hiring practices may have been influenced by political considerations. Gensler is expected to testify later this month, although the details are yet to be confirmed.

Alexander Stefanov