Category: Hearings

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Senator Lummis Asks For Disclosure Requirements From SEC’s Gensler Before Next Congress

Senator Lummis

It was a relatively brief interaction, but in engaging with SEC Chair Gary Gensler at his Senate Banking Committee hearing last week, Sen. Cynthia Lummis (R, WY) provided an update on her bipartisan Responsible Financial Innovation Act (RFIA) co-sponsored with Sen. Kirsten Gillibrand (D, NY).

Senator Lummis also generated news about the SEC’s crypto disclosure requirements.

View at 1 hour 36 minutes of the video for Thursday’s hearing on oversight of the SEC.

Lummis told SEC Chair Gensler that she and Sen. Gillibrand expect to re-introduce the bill early in the new Congress next year.

In order to meet that deadline, she asked that Chair Gensler and SEC staff work with her and Gillibrand on Section 301 of the bill to understand the necessary disclosures required by digital asset companies.

Throughout the brief interaction, Sen. Lummis made multiple mentions of her Democratic colleague’s involvement appearing to signal to the Democrat Gensler, who was appointed by a Democratic administration, that this isn’t just a Republican initiative.

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Preview: SEC Budget for 2023 and House Appropriations Committee Meeting

House Appropriations

On Capitol Hill this Wednesday, Securities and Exchange Commission (SEC) Chair Gary Gensler will appear before the House Appropriations Committee to review the SEC’s 2023 budget proposal as it looks to continue to fulfill its mission to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”

In late March, the SEC submitted its budget “justification” to Congress (PDF) as a precursor to the meeting and revealed several areas in which it expects to continue to engage crypto markets in 2023.

Side note: there are no members of the Congressional Blockchain Caucus on the House Appropriations Committee.

Enforcement

Following up on the SEC’s recent announcement of doubling positions related to crypto enforcement this year, the 2023 budget justification outlines a request for 125 additional positions in the Department of Enforcement (ENF) to help enforce regulations across financial assets – including crypto:

“ENF requests 125 additional positions to enhance the division’s ability to timely pursue the wide variety of misconduct within the SEC’s remit. They will also strengthen ENF’s capabilities to investigate new and emerging issues, including crypto-asset markets, cyber-related risks, and the environmental, social, and governance space. Finally, it is expected that the number of litigated cases will continue to rise as ENF increasingly holds wrongdoers accountable for their misconduct with more meaningful and, in some instances, escalating sanctions. ENF requires additional resources to ensure that it has an adequate number of attorneys to staff the increasing number of litigated cases.”

The ENF only accounts for an increase of 63 full-time employees in the justification’s line item – from 1302 in 2022 to 1365 in 2023 .

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What’s in Your Crypto Wallet? McHenry and More in DC This Week

Congressman Patrick McHenry

Congress is returning to action on Capitol Hill this week and blockchain-related happenings include…

On Thursday, April 28 at 10:00 AM ET, The House Committee on Financial Services Committee will convene for a two-part hearing beginning with FinCEN: “Oversight of the Financial Crimes Enforcement Network.” And then, following in the afternoon at 2 PM ET, the committee will hear, “What’s in Your Digital Wallet? A Review of Recent Trends to Mobile Banking and Payments.” Perhaps, the nod toward a Capital One marketing slogan (“What’s in your wallet?”) was unintended, but blockchain payment rails and cryptocurrency will likely be a hot topic. Webcast available here.

Also in the U.S. House of Representatives, the Committee on Financial Services will hear “Consumers First: Semi-Annual Report of the Consumer Financial Protection Bureau” on Wednesday, April 27 at 10 am ET. Get the webcast here. The Consumer Financial Protection Bureau Director Rohit Chopra will participate in the semi-annual review of results. It’s possible that cryptocurrency could come up here as banking transparency and regulation is discussed. The day before – on Tuesday, April 26 at 10am – the Senate Committee on Banking, Housing and Urban Affairs who will also meet with Director Chopra as well as consider “the nominations of Ventris C. Gibson, of Virginia, to be Director of the Mint, and Paul M. Rosen, of California, to be Assistant Secretary for Investment Security, both of the Department of the Treasury.” It’s unlikely the Mint discussion will include NFTs – but maybe someday? See the Senate hearing webcast.

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