During a recent Congressional hearing, the U.S. Securities and Exchange Commission (SEC) faced significant criticism over its handling of cryptocurrency regulations. Lawmakers from both parties expressed frustration with the SEC's approach, accusing the agency of creating confusion and failing to provide regulatory clarity. Former SEC Commissioner Daniel Gallagher, now with Robinhood, highlighted the agency's failure to offer clear guidelines. Rep. Ritchie Torres criticized the SEC for asking banks to violate generally accepted accounting practices and for inventing terms like 'Digital Asset Security' that lack legal backing. Rep. Maxine Waters ended her questioning of Robinhood's attempt to register, while Rep. Stephen Lynch argued that the crypto industry is being political. Congressman Warren Davidson accused SEC Chair Gary Gensler of undermining the ability to custody Bitcoin. The hearing underscored the growing tension between the SEC and the crypto industry, with calls for more transparent and fair regulations.