US SEC Oversight: Gary Gensler Hearing
The U.S. Securities and Exchange Commission (SEC) Chair, Gary Gensler, is scheduled to testify in a full committee hearing of the US Financial Services Committee on September 27, 2023. The House Financial Services Committee hearing, titled “Oversight of the Securities and Exchange Commission,” will take place at 10 AM Eastern Standard Time before the full committee.
In previous hearings, the Chairman of the House Financial Services Committee, Patrick McHenry, criticized the SEC’s overreach in crypto regulation. Given this history, it is expected that Gensler will face tough questioning during the hearing. In a previous hearing in April 2023, he was pressed about his stance on regulating crypto assets under US securities laws.
Gensler avoided directly answering whether Ethereum (ETH) was a security or a commodity. This time around, lawmakers may bring up the XRP lawsuit Summary Judgment, which stated that tokens sold to retail buyers were not securities. They may also inquire about the SEC’s views on approving spot Bitcoin ETFs in the United States.
SEC’s Review of Spot ETF Applications
The market is eagerly awaiting any updates on the SEC’s review of spot Bitcoin ETF applications. The outcome of this review could have a significant impact on Bitcoin’s price. Currently, market sentiment is cautious as participants await the SEC’s decision. According to a Bloomberg report, global crypto platforms have seen an outflow of $0.50 billion over the past nine weeks.
Not The SEC’s Views
In a recent hearing before the Senate Committee on Banking, Housing, and Urban Affairs, Gensler stated that the SEC was still reviewing Grayscale’s motion for approval of spot ETFs, as well as motions from other companies. Financial giants like Blackrock, Fidelity, and Ark Invest are among those seeking approval for a spot ETF.
Additionally, Gensler has been careful to clarify that his public comments do not necessarily reflect the views of the entire SEC. This distinction is likely an attempt to avoid backlash on the SEC as a whole for Gensler’s individual remarks.
Hot Take: SEC Chair Gensler Faces Scrutiny in House Committee Hearing
The upcoming full committee hearing of the US Financial Services Committee will put SEC Chair Gary Gensler in the spotlight once again. With previous criticism from lawmakers and questions surrounding crypto regulation, Gensler can expect tough questioning during the hearing. Lawmakers may challenge his stance on classifying cryptocurrencies as securities and inquire about the SEC’s views on approving Bitcoin ETFs.
This hearing presents an opportunity for lawmakers to hold Gensler accountable for his actions and statements, particularly in light of the recent XRP lawsuit defeat. The outcome of this hearing could have significant implications for the future of crypto regulation in the United States.
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