SEC Chairman Testifies About Digital Assets Monday, May 10, 2021 In a wide-ranging hearing before the House Financial Services Committee on May 6, 2021, SEC Chairman Gary Gensler addressed a number of SEC regulatory priorities, including the recent short-squeeze on so-called “meme stocks,” gamification of securities trading, broker-dealer payment for order flow, and climate change disclosure. During his first testimony before Congress as SEC chair, Gensler also answered a series of questions on cryptocurrency and digital asset regulation. The statements on crypto regulation begin to shed some light on his official approach to regulating the digital asset security ecosystem. Responding to questioning from Rep. Patrick McHenry (R-NC), Chairman Gensler said that the cryptocurrency market, which he noted is valued at more than $2 trillion, could benefit from “greater investor protection” under the SEC’s existing authority to regulate securities and asset managers. He referred to the agency’s recent request for public comment on broker-dealer custody of digital assets as an example of the SEC’s ongoing efforts in the space.