September is always a busy month on Capitol Hill, with lawmakers returning to Washington after the August recess. In an election year, it is even more busy as Members of Congress look to get back to their states and districts to campaign before the November election. This September was no different, with Committees holding important oversight hearings and react to recent court decisions.

“Stand With Crypto” Reaches Capitol Hill 

On September 18^th, the same day Coinbase held their 2^nd annual ‘Stand with Crypto Day’ the House Financial Services Digital Assets Subcommittee held a hearing entitled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets.” This hearing featured many industry witnesses and was another attack from Capitol Hill on the SEC for standing up to a lawless industry and enforcing long-standing securities laws, as Ranking Member Waters pointed out in her opening remarks. Better Markets released a fact sheet that shows how ‘standing with crypto’ is actually ‘standing with fraudsters.’

House Passes Anti-ESG Legislation

September before an election often brings a plethora of messaging bills up for vote that are unlikely to become laws. This year was no different, with the House GOP advancing an anti-ESG bill, which would limit disclosures and harm investors’ choices. Ranking Member Waters spoke out against the bill on the House floor before the vote. Ultimately, the bill passed through the House on a mostly party-line vote. Better Markets supports the SEC’s ESG disclosure rule, which would give investors the information that they are asking for when making investment decisions.

House SEC Oversight Hearing

On September 24, all five SEC Commissioners testified in front of the House Financial Services Committee in an oversight hearing for the first time since 2019. During the hearing, House Republicans continued to attack the agency over many issues that they have raised in the past, including their actions toward crypto, enforcement actions, and their rulemaking agenda including ESG and market structure reforms. Ranking Member Waters defended the agency and their strong enforcement actions that have returned almost $1bn for harmed investors. Better Markets highlighted the work the SEC is doing to reduce costs, increase transparency, and prevent identity theft through their rulemaking agenda.

Capitol Hill Responds to Kalshi Decisions

On September 12^th, courts sided with Kalshi in a damaging decision that would allow them to take bets on the upcoming election. Since then, there have been additional hearings and the decision is currently on hold, but that could change quickly. In response to this decision, Sens. Jeff Merkley, Sheldon Whitehouse, and Chris Van Hollen introduced legislation entitled the ‘Ban Gambling on Elections Act,’ which would prohibit this activity from taking place. Better Markets is tracking this issue closely so be sure to stay tuned for any updates.