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SEC Chair Gary Gensler has said the SEC considers Bitcoin a commodity but refused to pin down Ether at an oversight hearing.
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Patrick McHenry, chair of the United States Dwelling Financial Companies and products Committee, jumped correct into criticism of the Securities and Exchange Commission and its leadership over digital assets at an oversight hearing.
In an April 18 hearing on oversight of the SEC, Representative McHenry worn his opening statement to carry up the associated rate’s “punishing” of digital asset companies thru regulation by enforcement with out a clear path to compliance. The member of Congress reiterated calls for U.S. lawmakers to provide “clear ideas of the road” for crypto thru legislation. In addition, he pressed SEC Chair Gary Gensler to provide a definitive answer on whether Ether (ETH) qualified as a safety below the SEC’s purview or a commodity below the Commodity Future Trading Commission’s.
McHenry repeatedly talked over Gensler’s responses that didn’t embrace specifics, citing the SEC chair’s willingness to label Bitcoin (BTC) as a commodity and hinting at private discussions on ETH prior to the hearing.
“Clearly an asset cannot be both a commodity and a safety,” said McHenry. “I’m asking you, sitting in your chair now, to make an assessment below the laws as exist, is Ether a commodity or a safety?”
He added:
“You have pre-judged on this: You’ve taken 50 enforcement actions. We’re checking out as we shuffle, as you file suit, as other folks regain Wells notices, on what is a safety in your examine, in your agency’s examine.”
.@GaryGensler’s tenure has been outlined by recklessness. His agenda runs roughshod over process, precedent, & the #SEC’s statutory authority. I contemplate forward to speaking with him today.
Tune in at 10:00am https://t.co/qNdJ4wDkw5
— Patrick McHenry (@PatrickMcHenry) April 18, 2023
Representative Maxine Waters, ranking member of the Dwelling committee, didn’t press Gensler on ETH but targeted her questioning on the SEC’s enforcement capabilities. According to the SEC chair, the associated rate had the means, the authority and the desire to carry crypto companies into regulatory compliance.
Many in and out of the crypto space have criticized the SEC below Gensler for taking enforcement actions against companies fervent with digital assets and blockchain know-how. On April 17, the SEC charged crypto asset trading platform Bittrex and its co-founder William Shihara for offering unregistered securities, and a Wells glance issued to Coinbase in March suggests the major exchange may probably be next.
Gensler claimed the crypto market was “rife with noncompliance”, in many cases companies willfully doing so. His written testimony said compliance with the SEC extended to decentralized finance platforms — an indication of the associated rate proposing changing its ideas to embrace DeFi in exchanges below its purview.
Related: Video of SEC chair praising Algorand resurfaces after lately deeming it a safety
The April 18 hearing was the first time Gensler had at as soon as addressed the Dwelling committee since October 2021 — prior to the collapse of FTX, Celsius, BlockFi and crypto-pleasant banks including Signature, Silicon Valley Bank and Silvergate. The Financial Companies and products Committee will also meet to talk about stablecoin regulation in an April 19 hearing.
Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?