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Lawmakers Demand Clear Rules for Crypto as SEC Faces Criticism for 'Regulation by Enforcement'
Summary
Members pressed SEC commissioners for a statutory definition of digital assets and criticized the agency's enforcement-heavy approach; some urged passage of FIT21 or a stablecoin framework to provide clarity and guardrails for markets.
Members of the House Financial Services Committee spent a large portion of the hearing pressing the Securities and Exchange Commission and its commissioners on how the agency treats digital assets. The exchange centered on whether token sales are securities under the Supreme Court's Howey test and whether the SEC has used inconsistent terminology that creates regulatory uncertainty.
"Whether an investment contract is being offered and sold to the public...that's the Howey Test," SEC Chair Gary Gensler said in his testimony when explaining how the agency…
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