U.S. Senate takes SEC’s Gensler case over crypto verdict, climate risks

U.S. Senate takes SEC’s Gensler case over crypto verdict, climate risks

U.S. Securities and Exchange Commission (SEC) Chairperson Gary Gensler reportedly justified his organization's stance on cryptocurrencies and its drive to include climate risks in public company statements, Before the U.S. Senate Banking Committee.

Although Gensler testified before the panel as part of its routine oversight responsibilities, Republicans are currently upset with his agenda. They contend that he has overstepped his bounds by launching an extensive attack on American capital markets and has taken a hostile approach toward the banking sector.

Further, Gensler emphasized that his new standards are essential to assure that the American capital markets will continue to be the world's "gold standard" in prepared comments made public before the hearing.

Sources close to this development have claimed that a proposed SEC regulation requiring public corporations to report risks related to climate change, including greenhouse gas emissions, has Republicans particularly worried. Corporate organizations claim it is burdensome and goes beyond the agency's power.

The committee's senior Republican, Pat Toomey, warned in his opening remarks that the expense of complying will be more substantial to the investor than the information itself.

In light of a recent Supreme Court decision to limit the jurisdiction of the Environmental Protection Agency, which some legal experts claim threatens the SEC's authority on its climate rule, he also cautioned that the SEC should be "nervous" about legal challenges.

However, Gensler stated in his testimony that the rule would bring much-needed consistency and clarity to a matter that was essential to investors. He also made it to the deadlines recently when suggested that cryptocurrency companies would require numerous SEC registrations and split their operations into other legal organizations.

In addition, Gensler also stated that such "disaggregation," might strengthen investor protections and prevent conflicts of interest. Instructing Congress to avoid unintentionally undermining current investor rights while drafting cryptocurrency legislation, he also mentioned that SEC staff was collaborating with traditional market intermediaries seeking to enter the cryptocurrency industry.

Source Credit:  https://www.reuters.com/markets/us/us-senate-grill-secs-gensler-over-climate-china-crypto-2022-09-15/