SEC chief to testify about cryptocurrencies and other hot buttons

Gary Gensler, chairman of the Securities and Exchange Commission, will testify before the Senate Banking Committee on Tuesday after five months in office. According to that prepared statementswill need additional resources to get a broader agenda than most of its predecessors on the commission.

Since its ratification, Mr. Gensler’s public statements have generated much controversy, many headlines, and more than a few market movements.DealBook newsletter reports. What to expect on some key issues on Tuesday:

Mr Gensler wants to “refresh” the rules. It assesses structural issues such as too much concentration and conflicts of interest among market makers to promote efficiency and competition. pay for order flow. A committee aide said speeding up the transaction deals, which now take about two business days, is also a goal he has stated in his words, and wants Republican senators to follow suit.

When it comes to cryptocurrencies, buyers beware. Mr. Gensler will say that the new digital currency markets resemble a time before securities laws: crypto finance, export, trade and lending.

An aide said Massachusetts Democrat Senator Elizabeth Warren, who has been outspoken about regulatory gaps in the crypto industry, will follow up on these concerns. Wyoming Republican Senator Cynthia Lummis will also press Mr Gensler for regulation, but will highlight this to reflect her support for the crypto industry. “We must have a balanced legal framework for digital assets that enables innovation and protects consumers,” he told DealBook.

More necessary disclosures are being made on climate risk, human capital and cybersecurity. Perhaps sensing the resistance he will encounter on this issue, Mr. Gensler will state in his report that “these proposals will be informed by economic analysis and submitted for public comment so that we can have sound public debates”. Warnings. Pennsylvania Republican and ranking committee member Patrick Toomey has previously retracted annotations on environmental, social and governance issues and will likely renew those criticisms at the hearing.

Other priorities include greater transparency on SPACs, China and insider information. Mr Gensler will say that the rise in special purpose buyout companies, which allow businesses to go public with fewer rules than traditional initial public offerings, is a cause for concern. “internal” in structures.

He also wants the risks of Chinese companies traded on US stock exchanges to be made more specific. And will discuss efforts to “modernize” a rule known as 10b5-1 About executive share sales, which helps insulate insiders from accusations of trading with non-public information.

At the trial, Mr Gensler will receive guidance from senators on what his priorities should be. How far he can push his plans may depend, in part, on whether lawmakers give him more powers and resources.

Like Mr. Gensler, Ohio Democrat Sherrod Brown and the committee chair are enthusiastic about greater transparency and stricter investor protections. In his prepared remarks, Mr Brown will open the hearing by stating that “the disconnect between the stock market and the lives of most Americans has never been more painfully clear,” and that whatever the economic conditions, “hedge funds, SPAC sponsors, big banks, brokers – big guys look fine.

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