The U.S. House Committee on Financial Services has given Securities and Exchange Commission (SEC) Chair Gary Gensler an ultimatum to respond to its inquiries. On May 9th, the lawmakers requested that the SEC provide the committee with internal non-public documents related to its activities, including charges against bankrupt FTX founder Sam Bankman-Fried, crypto regulations, and company climate disclosures. They also requested a list of all digital asset entities that have attempted to register with the Commission and the communications and documents related to the process.
The Committee criticized Gensler and the SEC staff for failing to provide adequate responses to these inquiries. They noted that the SEC had sent voluminous documents, but most of the information was publicly available. The Committee gave the SEC a deadline of May 19th to provide the requested documents, or it would invite the General Counsel and the director of the Legislative Affairs Office for questioning.
Congressman Bill Huizenga expressed frustration with the SEC’s lack of cooperation, stating that the lawmakers were tired of the SEC’s “stonewalling.” He also noted that during a Financial Committee hearing, Gensler said he respected the role of congressional oversight. If Gensler would not answer their questions, the Committee would make sure someone from his staff does.
This is the latest effort by the Committee to understand the SEC’s operations under Gensler. However, the previous letters and hearings have not yielded much regulatory clarity for the crypto industry. Some members have suggested that the lawmakers should subpoena and compel the Commission to respond to its requests.
In conclusion, the U.S. House Committee on Financial Services has given the SEC Chair an ultimatum to respond to their inquiries. The Committee requested internal non-public documents related to its activities, including charges against bankrupt FTX founder Sam Bankman-Fried, crypto regulations, and company climate disclosures. They criticized the SEC for failing to provide adequate responses and gave them until May 19th to provide the requested documents. The lawmakers expressed frustration with the SEC’s lack of cooperation, and some members have suggested that they should subpoena the Commission if necessary.