Summary of SEC Hearing: Here's What Gary Gensler Said About Crypto!

00:00:00 - 00:30:00

Gary Gensler, the current head of the SEC, testified before the Senate Banking Committee today about cryptocurrencies. He stated that the SEC's focus is on protecting investors, and that any complaints from the other side of the aisle are unjustified. He also said that the SEC needs to make sure investors are protected from crypto-pushed for climate disclosures, called for the scrutiny of stock buybacks, and even managed to talk about the inflation reduction act.

• 00:00:00 The Securities and Exchange Commission (SEC) is cracking down on cryptocurrencies other than Bitcoin, with particular emphasis on platforms that were recently acquired by fraudulent investors. Gary Gensler, the chairman of the SEC, testified before the US Senate Banking Committee today and said that any complaints from the other side of the aisle are unjustified because the SEC is just doing its job. He also said that the SEC needs to make sure investors are protected from crypto-pushed for climate disclosures, called for the scrutiny of stock buybacks, and even managed to talk about the inflation reduction act.
• 00:05:00 The SEC hearing focused on the importance of climate disclosure for institutional investors and the potential for new regulations for cryptocurrency. Gary Gensler argued that almost every cryptocurrency is a security, and that any attempts at creating unique regulations would undermine the Securities Market.
• 00:10:00 The video discusses the SEC hearing in which Gary Gensler testified about crypto and his views on decentralization. Gary clarified that what the SEC focuses on are expectations of profit coming from an identifiable third party, which is similar to the arguments in recent crypto enforcement actions. Pat followed up with a logical question and that is whether it's possible to identify the origin of an expectation of profit for a crypto that is decentralized. Gary fumbled his response, and John Tester (a Senator from North Carolina) asked why the SEC only provided a single page of information about its proposed climate disclosures. Gary again fumbled his response, and Tom Tillis (a Senator from North Carolina) pivoted to another topic.
• 00:15:00 The video discusses Treasury market regulations and Gary Gensler's testimony. Gary states that, if passed, the regulation would require regular investors to register as brokers with the SEC if they trade more than 25 billion dollars of government debt per month. John Kennedy asks if this would affect small businesses, and Gary is unable to provide a clear answer. Mike Rounds asks why the SEC hasn't gone after cryptocurrency exchanges yet, and Gary responds that most cryptos are securities due to expectations of profits coming from developers. Catherine Cortes asks why the SEC hasn't provided regulatory guidance on cryptocurrency, and Gary responds that it is because most crypto exchanges have not been compliant. Mike Rounds also asks about ESG-related climate disclosures, and Gary confirms that institutional investors are concerned about greenwashing. The next senator to take a turn is Mike Rounds, who voices concerns over the regulation and its lack of clarity.
• 00:20:00 Gary Gensler, the former head of the SEC, testified that institutional investors are pushing for climate disclosures and that this is why the SEC is considering a new regulation. He also revealed that most of the comments to the SEC's proposed climate disclosures rule came from institutional investors who manage a whopping 50 trillion dollars in assets.
• 00:25:00 Gary Gensler testified that the SEC's intention is not to go after small businesses, and that all the SEC wants to do is introduce a standard for these disclosures. He reiterated that the intention is not to go after small companies, but said that small businesses will either have to disclose these details or face potential regulation. Elizabeth Warren spoke about the importance of climate disclosures, and discussed how scope 3 emissions (emissions from fuel in cars) would be counted towards emissions of the company that produced the fuel. Pat Toomey explained that the SEC's climate disclosure rule requires Congressional Authority due to its scope, and asked Gary if the SEC has considered rescinding its proposed climate disclosures rules. Gary said no, and Pat warned that if the SEC goes ahead with its climate disclosure rule, the SEC and the Gang will find themselves face to face with an unsympathetic Supreme Court. This testimony indicates that cryptocurrency is still at risk of regulation by the SEC, and that investors should be prepared for bloodbath-like conditions.
• 00:30:00 Gary Gensler testified before the SEC about crypto, and he had some negative comments about it. He believes that Scope 3 emissions take climate disclosures too far and could have huge problems if they're implemented. He also mentioned that the world economic forum is leveraging its massive network of young global leaders and Global Shapers to make sure the great reset is a success. He concludes the video by saying that crypto will come up with the tools to combat these genetically modified grassroots movements, and that you can learn more about what they're planning and the power of crypto governance using the links in the description.