Last updated on May 18th, 2024 at 11:47 am
Gary Gensler Ethereum Security – On April 18, SEC’s chairman Gary Gensler came before the House Financial Services Committee and testified for about five hours.
The committee is holding a hearing to check the activities of the exchange commission. The Security and Exchange Commission boss Gary Gensler dodged when questioned about Ethereum.
The question of whether the world’s second-largest crypto Ether is a security was thrown at him and he didn’t say. Furthermore, questions about his agency’s conduct were asked and he fended them off. Among the questions asked was if his pushing too hard on rules, also how he was handling crypto companies looking to function in the U.S.
Further non-crypto-related questions were also thrown at him including questions about climate change and audit trails. Since the present congress took over, this would be Gary’s first appearance before the House. This is also his first appearance in over a year.
Gary Gensler on Crypto Regulation In The U.S. House Hearing
The Committee Chairman Patrick McHenry (R-N.C.) said in his opening statement,
“Congress must provide clear rules of the road to the digital asset ecosystem because the regulators cannot agree.” “Regulation by enforcement is not sufficient nor sustainable. Your approach is driving innovation overseas and endangering American competitiveness.”
The chair of the committee repeatedly asked Gary if Ethereum is a security or commodity given the 50 enforcement actions. The SEC chair attempted to answer the question by saying “It depends on the facts of the law.”
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Gary’s uncertain answers were pointed out over again by Patrick McHenry who highlighted the SEC chairman’s wish to list Bitcoin as a commodity in an earlier discussion.
“Clearly an asset cannot be both a commodity and a security,” said McHenry. “I’m asking you, sitting in your chair now, to make an assessment under the laws as exist, is Ether a commodity or a security?”
“You have pre-judged on this: you’ve taken 50 enforcement actions. We’re finding out as we go, as you file suit, as people get Wells notices, on what is security in your view, in your agency’s view.”
However, taking a different tone, Maxine Waters (D-Calif.), McHenry’s counterpart Ranking Member praised SEC’s chair, Gary, and his team. He said that the hearing is rather focused on Gensler rather than other pressing matters like housing crises, and the recent bank failures.
He said,
“I would also like to applaud Chair Gensler and his staff for the forceful actions the SEC has taken and dedicated more resources to go after crypto criminals.”
How the Crypto Community Reacted
Cryptocurrency enthusiasts have been following the case closely. They have long criticized the SEC chair for his policies and they applaud the inquiries made by Rep. Patrick McHenry.
Some are also of the opinion that the SEC chairman be released from his post and handed over to someone else more competent. Watch the full video HERE
