FX168 Financial News Agency (Europe) reported that Hester Peirce, a member of the US Securities and Exchange Commission (SEC) known as the 'Crypto Mom,' stated that the SEC has indeed been negligent, with unclear regulatory boundaries, emphasizing that cryptocurrencies are not securities. However, US Congressman Brad Sherman seems to align with SEC Chairman Gary Gensler, calling for legislation to clarify that cryptocurrencies are a type of security.

On Tuesday, September 24th, SEC Chairman Gensler and 5 SEC commissioners attended a Congressional hearing together for the first time since 2019.

During Gensler's leadership at the SEC, he has repeatedly shown a suppressive attitude towards the cryptocurrency industry, causing US companies to face regulatory obstacles.

At the beginning of the hearing, Gensler first stated that he did not hold a bias against cryptocurrencies, claiming to maintain a neutral stance on the matter.

He emphasized: 'Putting something on a blockchain ledger does not change the economic reality. The key is whether it can be a good investment, and we remain neutral on this.'

In response to Gensler's views, Hester directly expressed opposing views.

(Source: Youtube)

She mentioned that the US Securities and Exchange Commission, in regulating cryptos, has adopted legally inaccurate views, masking the issue of unclear regulation.

She explained, "I believe that we as regulators have indeed been negligent in accuracy. In fact, these tokens are not securities, this is a problem we should have acknowledged long ago, and we should address the challenges faced by the industry."

"Our efficiency is too low, in the end, everyone wants to know where our power boundaries lie," she continued.

However, U.S. Representative Brad Sherman, after speaking to House Financial Services Committee Chair Patrick McHenry, expressed his view on cryptos for the first time, stating that crypto could be clarified as a security through additional legislation.

He seems to lean towards Root's position, saying, "The SEC is the primary institution for protecting investors and is responsible for almost all other intangible assets. We can provide clarity, although I don't think it's necessary, we can clarify cryptos as securities through additional regulations."

In addition, Sherman also mentioned that cryptos play a role in hiding assets for politicians. "The magic of cryptos is its ability to hide assets, if you look at our campaign finance laws, you will find that when politicians accept cryptos without disclosing where the money comes from, no one can enforce our laws."

However, another congressman, Tom Emmer, criticized the U.S. Securities and Exchange Commission's handling of the DebtBox case as 'destructive' and accused the committee of freezing DebtBox assets based on inaccurate information, leading to sanctions against the SEC by the court.

In response, Root also admitted that the handling of the incident was very poor. Later, a U.S. judge ruled against the SEC's malicious behavior, ordering the SEC to pay approximately $1.8 million in legal fees. This includes around $1 million in attorney fees and $750,000 in receivership fees.