Recently, US authorities have intensified their actions against the domestic cryptocurrency industry, making Operation Choke Point 2.0 more evident than ever. The US Securities and Exchange Commission (SEC) has been central to this campaign, as it issued a Wells Notice to Coinbase and initiated a lawsuit against crypto magnate Justin Sun for fraud and other securities law violations.
Until now, the US Congress has not provided oversight of the SEC’s actions. However, this is about to change. In a conversation with Punchbowl News, Patrick McHenry, chairman of the Financial Services Committee, disclosed that SEC chairman Gary Gensler will testify before the committee for the first time on April 18 to justify his actions. The United States House Committee on Financial Services, overseen by Republican Patrick McHenry from North Carolina since 2023, is responsible for supervising the entire financial services sector, including securities, banking, and cryptocurrency assets.
Committee Chairman McHenry aims to prioritize the oversight of the SEC during his chairmanship and intends to subject Gensler to greater congressional scrutiny than before. The hearing is designed to shed light on Gensler’s rulemaking strategies and approach to cryptocurrency assets. In the upcoming months, McHenry also disclosed that he plans to closely examine crypto asset regulation.
“I’m pleased that we were able to announce that and get it underway. This will be the first of many regulatory hearings throughout the summer,”
The chairman, McHenry
The reality of Operation Choke Point 2.0 on crypto is substantiated by a recent analysis published by law firm Cooper & Kirk, which successfully sued the FDIC, OCC, and Fed over the original Operation Choke Point 1.0 in 2014. The report illustrates how banking regulators are employing the same unlawful threats and pressure tactics against the crypto industry in 2023 as they did in 2014.
Denis Porter : “Pro-Crypto & Pro-#Bitcoin Democrats are lining up to voice their opposition to their own party’s stance. Democrats are on the verge driving their own voters away and losing support from this important new voter block. In my opinion it could cost Democrats the 2024 election.”
In response to Dennis Porter , one of twitter user who is democrat does not support Biden’s stance on crypto. Twitter link below.
Conclusion
In conclusion, the upcoming congressional hearings, led by Committee Chairman McHenry, will play a crucial role in examining the SEC’s approach to cryptocurrency regulation and the reality of Operation Choke Point 2.0. As regulatory oversight increases, the crypto industry must prepare for potential changes in the regulatory landscape. These hearings offer an opportunity for greater transparency and understanding between regulators and the crypto community, ultimately fostering a more collaborative environment for the growth and development of the industry. It is essential to strike a balance that addresses regulatory concerns while preserving innovation and progress in the rapidly evolving world of cryptocurrencies.
Suggested Reading :
- SEC Charges Crypto Entrepreneur Justin Sun and Celebrities for Fraud and Securities Law Violations
- SEC Targets Coinbase with Wells Notice on Staking & Asset Listings
- SEC Cracks Down on Binance.US for Operating as Unregistered Securities Exchange: Will Cryptocurrency Survive Regulatory Onslaught?
- Bitcoin Advocates Heartbroken as SEC Disapproves VanEck’s Spot BTC Trust Product – But Hope is Not Lost!
- US Judge Rules SEC’s Objection to Binance Deal in Bankruptcy Case as Invalid – Hope for Voyager
