LIVE: In 15 minutes @SenateBanking @BankingGOP will consider the nominations of Gary Gensler for @SEC_News and @chopraftc for @CFPB. Gensler in particular might have a major impact on the industry. You know the drill, thread starts here:
coindesk.com/gary-gensler-s…
coindesk.com/gary-gensler-s…
Should be livestreamed here banking.senate.gov/hearings/02/22…
We are off, with @SenSherrodBrown introducing the nominees and discussing the impact the COVID pandemic has had on individuals
"Burdensome" regulations, including "backdoor regulations by enforcement" could limit consumer access to capital, says Sen. @PatToomey, noting last year's economic hit
Something I've been meaning to look into is this CFPB report published in January that seems to hint the agency might want to ergulate payment fintechs? files.consumerfinance.gov/f/documents/cf…
.@SenatorCardin endorses Gensler for @SEC_News
As does Sen. @ChrisVanHollen
Gensler is touting his record at the @CFTC in his opening before the @SenateBanking @BankingGOP hearing on his nomination to be SEC Chair (full remarks here: banking.senate.gov/imo/media/doc/…)
"I believe financial technology can be a powerful force for good, but only if they can continue to harness the core values of the SEC in service of investors, issuers and the broad public," Gensler says in his opening statement
.@chopraftc says if confirmed he will work with Congress to "tackle the pressing problems that families face in their financial lives during this critical moment." (full remarks here: banking.senate.gov/imo/media/doc/…)
Re: #GameStop, Gensler says the big questions are: How to ensure customers get best execution in PFOF and how to protect investors using trading applications designed to incentivize more trading
Asked what role @CFPB plays in addressing pandemic risks, @ChopraFTC says if wrongdoing occurred, CFPB should take enforcement action
Sen. @PatToomey asks Gensler if he'd commit to evaluating a letter he sent to Acting SEC Chair Lee that would require transfer agent reg modernization, report on faster settlement times, etc. Gensler says he looks forward to working with staff on this (banking.senate.gov/newsroom/minor…)
(Senators are still asking questions, I'm mainly waiting for the fintech ones, though if there's interest in me tweeting the rest lmk)
Q: "What can Congress and the SEC do to create a more forward-thinking regulatory environment for innovators?"
Gensler's A: "I think as I teach at MIT on these subjects that these innovations have been a catalyst for change, bitcoin and cryptocurrencies have brought new thinking to payments and financial inclusion but they've also raised new issues of investor protection that we still...
2/ "... need to attend to ... I'd work with fellow commissioners to both promote the new innovation but also ... ensure for investor protection." Gensler adds he'd make sure there's appropriate investor protection on exchanges and see if anything falls under securities laws
This tweet is relevant
https://twitter.com/nikhileshde/status/1136712489436139520
.@SenLummis asking if the SEC could provide new rules and no action letters around the digital asset space. Gensler says "I do think that technology and markets constantly change and evolve and that it's important for the SEC to provide guidance and clarity."
Gensler brings up investor protection beyond just custody "to ensure that these markets are free of fraud and manipulation."
Blockchain "is already doing some of that right now," Gensler says in response to a @SenLummis question about how it can impact financial inclusion. He points to 24/7 payments systems, cross-border transactions, using blockchain as a ledger
"I'm neither a maximalist nor a minimalist but I do believe it's a catalyst for change," Gensler says
.@chopraftc says the @federalreserve must modernize its payment system: "We cannot be falling behind other countries. We see that China is investing in faster payments, in a stablecoin ... that will help consumers and businesses get funds faster."
"We need to understand more clearly how mass data collection on all of us is impacting our privacy, the security of our data and ultimately the decisions made by theses algorithms," @chopraftc says. "I think there's real questions about transparency."
.@chopraftc says faster payment system would ensure people have access to their money more quickly
.@SenThomTillis just asked whether @chopraftc is concerned that a speech or a comment could drive a regulatory regime, which is something that actually sorta happened in crypto (basically how things went with Ether).
And the hearing adjourns after three hours and two rounds of questioning. Thoughts in a bit.
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