U.S. Congressman criticizes SEC for ”political interference in regulating cryptocurrency companies”

A Republican congressman who chairs a subcommittee in the U.S. House of Representatives has accused the Securities and Exchange Commission (SEC) and its Chairman Gary Gensler of political interference in regulating cryptocurrency companies.
On the 18th (local time), Republican Sen. French Hill, who is the chairman of the Digital Assets Subcommittee,
Hill, at a House Financial Services Committee hearing held on the same day,
"Chairman Nancy Pelosi's approach to digital assets has created confusion and uncertainty in the markets," Hill said. "Confusion and Chaos: The SEC's Politicized Approach to Digital Assets."
During the hearing, titled “Analysis of the Future of Cryptocurrencies,” he suggested alternative regulatory routes for cryptocurrencies, such as the Financial Innovation and Technology for the 21st Century (FIT21) Act currently moving through Congress.
“The majority and bipartisan support for FIT21 and the regulatory framework will allow the SEC to punish those who violate the rules and to enforce regulations on digital asset securities and other securities.”
"That doesn't mean we're opposed to modernizing existing regulations to integrate new tools that are useful to our customers," he said. "We are opposed to the SEC's abuse of enforcement and the inability to comply with the rules."
"We oppose making it harder for legal entities to bring innovation and technology to the market," he added.
In response, Democratic Senator Stephen Lynch, a member of the subcommittee,
Stephen Lynch refuted the SEC's politicization claims, pointing out that "millions of dollars are being spent in the cryptocurrency industry to support candidates in the 2024 congressional elections."
Lynch alluded to the industry's role in fomenting resistance to cryptocurrency regulation in Congress. "If anyone is acting politically, it's the crypto industry," she said.
"What remains of the largely collapsed digital asset sector is well known to be used to facilitate illicit finance and illegal activity," he said.
He also pointed out that Republican presidential candidate Donald Trump had started a "wrong cryptocurrency business" before the November election, and said, "U.S. lawmakers should
"Instead of focusing on the potential benefits of the technology, we are debating a bill that would regulate a tiny part of the financial sector," he added.