Emmer accuses Gensler and the SEC of "pushing American firms into the hands of the [Chinese Communist Party]".

Emmer entered into the record a WSJ article about crypto going to China. I believe it was this one: https://www.wsj.com/articles/hong-kong-banks-are-netting-crypto-customers-as-citys-push-gains-steam-ccb5811f

#SEChearing

Rep. Gottheimer (D-NJ, member of blockchain 8) says he's concerned about the SEC is regulating by enforcement and not through formal guidance. Gensler says they have been issuing guidance.

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Rep. Loudermilk (R-GA): "What I see in industry is a decentralization of information because of the risk of disclosure. Blockchain. Many industries are going to blockchain because you're no longer centralizing. When it's centralized, there's a one-stop shop for the bad players to come and get information about individuals."

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"Is it easier to protect decentralized investor information held by thousands of firms, or do you feel it's more secure to centralize that in a database administered from Washington, DC?"

🥴

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Loudermilk: "Let me tell you, there is no one in the information systems industry that's worth their salt that will tell you that it's more secure to have information at one point, one-stop-shop so if I'm a bad guy, I'm a foreign player, I've only got one spot to go to pull all this information. I'm going to put all my investment, all my technology in breaking your security to get that information." 1/2

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"... Versus thousands of places that I do not have the resources to do that. Centralizing is a security risk." 2/2

I have a headache now.

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I think he was talking about the Consolidated Audit Trail, but uhh

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Rep. Meeks (D-NY) speaks of the NYDFS BitLicense regime for crypto. He asks Gensler for his thoughts on the repeated claims that crypto businesses will just go offshore.

Gensler: "If they're compliant with laws and doing right by investors, they can be here."

#SEChearing