• The U.S. House Committee on Financial Services issued a May 19 ultimatum to the Securities and Exchange Commission (SEC) chair Gary Gensler to respond to its inquiries.
• The lawmakers requested the SEC to send a list of all digital asset entities that have tried registering with the Commission and the communications and documents on the process.
• The Committee bashed Gensler and the SEC staff for failing to provide adequate responses to these inquiries.
US House Financial Committee Issues Ultimatum To SEC Chair Gensler
The U.S. House Committee on Financial Services issued a May 19 ultimatum to the Securities and Exchange Commission (SEC) chair Gary Gensler, demanding that he respond to inquiries into its activities by that date or face consequences. In a letter sent on May 9, the lawmakers requested information including charges against bankrupt FTX founder Sam Bankman-Fried, crypto regulations, company climate disclosures, and a list of all digital asset entities that have tried registering with the Commission along with communication and documents related to the process.
SEC Staff Criticized For Failing To Provide Adequate Responses
The committee noted in its letter that it had received mostly publicly available information from voluminous documents sent by the SEC but not adequate responses for their requests yet. As such, they criticized Gensler’s staff for their failure in providing sufficient responses. They stated that it was “inconceivable” for an agency as large as 5,000 people with nearly 150 attorneys in its General Counsel’s office and more than 200 employees in its Division of Corporation Finance should fail at such an endeavor.
Ultimatum Issued With Possible Consequences
In conclusion, they warned Gensler of potential consequences if he failed to comply with their request by May 19th 2021 – stating that they would be forced “to consider alternative means of obtaining compliance” if he failed do so within this timeframe while stressing how important it was for them obtain proper response from him in order “to fulfill [their] oversight obligations” over his agency effectively.
SEC Chair’s Response So Far
Gensler has yet to issue any public statement regarding this ultimatum or his plans for responding before the set deadline; however he did recently comment about his commitment towards curbing abuse in crypto markets during an interview last month – noting how difficult it was when it comes regulating them due partly due their lack of transparency compared other financial markets like stocks or bonds which are well regulated because of sufficient disclosure requirements meaning investors can get accurate info about securities before buying them .
It is clear from this development between US house financial committee and SEC chairman Gary Gensler that there is an issue between both parties concerning regulation transparency matters of cryptocurrency/digital assets markets which needs resolution soon as possible otherwise alternative means might be taken should proper response not be provided before deadline set by US house financial committee