During a roughly four-hour hearing on September 24, SEC Chair Gary Gensler and the other four SEC commissioners testified before the House Financial Services Committee. The hearing highlighted deep ideological rifts within the SEC, particularly around cryptocurrency regulation, and underscored the divide between the Republican and Democratic commission members.
Schulte Roth & Zabel co-managing partner Marc Elovitz recently discussed the hearing with Pensions & Investments for their piece titled, "5 SEC commissioners head to Capitol Hill," where he described the vast ideological disagreements among the five-member commission. "It used to be the case that most commission decisions, whether it be on a rule or enforcement action, were unanimous...but this has been a purely partisan split on issue after issue and (Peirce and Uyeda) have been issuing dissents, which is rare," Marc stated.
Disagreements were not limited to crypto but extended to disclosure mandates and public feedback incorporation into rule-making processes, showcasing fundamental differences in approaches within the SEC.
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