- Securities and Exchange Commission Chair Gary Gensler appeared before the Senate Banking Committee on Tuesday to answer questions related to a variety of topics, including artificial intelligence, mutual funds, investor protection measures, and the agency's series of enforcement actions against cryptocurrency companies.
He noted that various sections of the Securities Exchange Act of 1934 “require that intermediaries acting as securities exchanges, brokers and dealers, and clearing agencies are subject to the securities laws, and must register or satisfy requirements for an exemption.” In response to an early question related to cryptocurrencies, Gensler maintained his position that the SEC should be the agency to oversee the growing industry, and at one point said that in his 44 years of experience related to finance, he has “never seen a field that is so ripe with misconduct. It’s just daunting.”
Senator Lummis asked Gensler a more technical question about a rule that requires companies, including banks, to place cryptocurrencies under custody on their balance sheets.