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Patrick McHenry, chair of the US House Financial Services Committee, launched into criticism of the Securities and Exchange Commission (SEC) and its leadership regarding digital assets during an oversight hearing.
During the April 18 hearing on SEC oversight, Representative McHenry used his opening statement to highlight the commission’s “punishing” of digital asset firms through regulation by enforcement without a clear path to compliance. The congressman reiterated calls for US lawmakers to provide “clear rules of the road” for crypto through legislation. Additionally, he pressed SEC Chair Gary Gensler to provide a definitive answer on whether Ether (ETH) qualifies as a security under the SEC’s purview or a commodity under the Commodity Futures Trading Commission (CFTC).
McHenry repeatedly interrupted Gensler’s responses, which lacked specifics, citing the SEC Chair’s willingness to label Bitcoin (BTC) as a commodity and hinting at private discussions regarding ETH prior to the hearing.
“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 they exist: is Ether a commodity or a security?”
He added:
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“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, what is a security in your view, in your agency’s view.”
.@GaryGensler’s tenure has been defined by recklessness. His agenda runs roughshod over process, precedent, & the #SEC’s statutory authority. I look forward to speaking with him today.
Tune in at 10:00am https://t.co/qNdJ4wDkw5— Patrick McHenry (@PatrickMcHenry) April 18, 2023
Related: Video of SEC Chair Praising Algorand Resurfaces After Recently Deeming It a Security
Representative Maxine Waters, ranking member of the House committee, did not press Gensler on ETH but focused her questioning on the SEC’s enforcement capabilities. According to the SEC Chair, the commission had the means, the authority, and the will to bring crypto firms into regulatory compliance.
Magazine: Crypto Regulation: Does SEC Chair Gary Gensler Have the Final Say?
This is a developing story, and further information will be added as it becomes available.
