During a hearing that was called to investigate the collapse that occurred in the cryptocurrency market, the United States Securities and Exchange Commission (SEC) and Gary Gensler, the director of the SEC, were criticized by those in attendance. Throughout the hearing, various legislators and witnesses directed their criticisms in this general direction.

During a February 14 hearing titled “Crypto Crash: Why Financial System Safeguards are Need for Digital Assets,” Senate Banking Committee ranking member Tim Scott stated that Gensler should appear before Congress by September to discuss additional enforcement actions in the cryptocurrency space. The hearing was titled “Crypto Crash: Why Financial System Safeguards Are Needed for Digital Assets.” In addition to this, Scott has criticized the SEC chairman for not testifying and instead “making the rounds on the morning talk shows.” The following was the focus of the hearing: “The collapse of cryptocurrencies and the reasons why financial systems require new protection measures for digital assets.” The senator from South Carolina affirmed that the Securities and Exchange Commission (SEC ) had not provided “the least amount of guidance”, which may have been a contributing factor in the lack of investor protection in companies in financial distress such as FTXTerra, BlockFi, Voyager, and Celsius.

“assume that the SEC has not made any significant preemptive effort to ensure that this type of catastrophic failure does not happen again” “assume that the SEC has not made any significant attempt to prevent this from happening” “Did they just stay?” Asleep behind the wheel even though they have all the necessary equipment? It would be very beneficial if Chairman Gensler could get in here as soon as possible instead of later, and express his views as soon as possible.