On June 16th, Patrick McHenry, the Chairman of the House Finance Service Committee, announced that they will hold an oversight hearing for the US Securities and Exchange Commission (SEC). The oversight hearing will be divided into two sessions conducted by different subcommittees.
●On June 22 at 21:30, the Oversight and Investigation Subcommittee will hold a hearing on supervising the SEC.
●On June 22 at 22:30, the Capital Markets Subcommittee will hold a hearing on supervising the trading and markets division of the SEC.
To better understand the significance of this supervisory hearing, let's first briefly understand: What is the United States House Financial Services Committee? What is the United States Securities and Exchange Commission? And what powers do they each have?
The Financial Services Committee of the United States House of Representatives is one of the committees in the US House of Representatives responsible for overseeing and regulating legislative and policy-making activities related to the financial services industry, securities markets, insurance industry, and other related areas.
The Securities and Exchange Commission (SEC) is a federal agency responsible for regulating the US securities market, preventing fraud, and safeguarding the interests of investors. Its primary responsibilities include overseeing registered securities firms and exchanges, providing investor education, and protecting investor rights.
Mitrade analyst: From the above, it can be seen that the SEC is regulated and supervised by the House Financial Services Committee, and it cannot do whatever it wants. On June 22nd (this Thursday), the House Financial Services Committee will hold a supervisory hearing on the SEC, which is actually a review of the SEC's actions to determine their legality and reasonableness. If the SEC violates laws and regulations, the House Financial Services Committee has the right to take corresponding measures against it.
In the past two years, the cryptocurrency market has been continuously targeted by heavy-handed actions from the SEC. Among them, Binance Coin (BNB), Ripple (XRP), Filecoin (Fil), and other projects or exchanges have been accused of violating regulations or deemed as securities, which is an established fact. However, it is uncertain whether the House Financial Services Committee's oversight hearing on the SEC is about its attitude and measures towards cryptocurrency.
If the upcoming supervisory hearing is directed at the SEC's cryptocurrency crackdown over the past two years, it will cause significant volatility in the crypto market regardless of the outcome. If the House Financial Services Committee supports the SEC, it will become even more aggressive in cracking down on cryptocurrencies. If they do not support or oppose the SEC's actions, the regulatory environment for cryptocurrencies in the United States will improve, which is favorable for the industry's development. Therefore, investors must closely monitor the hearing on June 22 and be prepared to respond to the volatile market conditions.
