U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler testifies before a Senate Banking, Housing, and Urban Affairs Committee oversight hearing on the SEC on Capitol Hill in Washington, U.S., September 14, 2021.

Evelyn Hockstein | Reuters

WASHINGTON — Securities and Exchange Commission Chairman Gary Gensler faced stern opposition from House Republicans during a hearing on Tuesday, as they challenged his agency’s enforcement of cryptocurrency trading platforms.

The four-hour testimony saw Gensler stand firm on his stance that crypto platforms should abide by U.S. securities laws.

“All of these companies should come into compliance with the law, and until they do, we will continue to pursue them as the cop on the beat, and investigate and follow the facts and law,” Gensler said.

Republicans raised many of the points the crypto industry regularly makes about regulation, claiming that the SEC’s disclosure rules were designed to regulate traditional markets, and are not suitable for decentralized digital currency exchanges.

Without legislation from Congress that creates a new regulatory framework specifically for crypto, the companies argue, digital platforms will move overseas to avoid running afoul of U.S. regulators.

This could weaken America’s status as a hub for cryptocurrency innovation, they argue, and potentially cede that position to U.S. adversaries.

“Your approach is driving innovation overseas and endangering American competitiveness,” committee chairman Rep. Patrick McHenry, R-N.C., told Gensler.