SEC Chair Faces Questions on Cryptocurrency Regulation
During a House committee hearing, Securities and Exchange Commission (SEC) Chair Gary Gensler faced scrutiny over the agency’s approach to regulating cryptocurrency. Lawmakers raised concerns about spot bitcoin exchange-traded funds (ETFs), whether bitcoin is considered a security, and even whether a Pokemon card could be classified as a security.
Bitcoin’s Security Status
House Financial Services Committee Chair Patrick McHenry asked Gensler about the classification of bitcoin as a security. Gensler clarified that bitcoin is not a security and does not meet the criteria outlined in the Howey Test, which determines whether transactions are subject to securities laws.
Subpoena Threat
McHenry also threatened to issue a subpoena to Gensler for allegedly lacking transparency regarding his interactions with bankrupt crypto exchange FTX and its former CEO Sam Bankman-Fried. He emphasized the need for the SEC to recognize Congress as an equal branch of government.
Rep Maxine Waters supported Gensler and highlighted concerns about the potential impact of a government shutdown on the SEC.
‘Regulation by Harassment’
Rep. Tom Emmer accused Gensler of being biased and adopting a “regulation by harassment” approach towards digital assets. Emmer claimed that Gensler’s actions were detrimental to everyday Americans and the country’s financial future.
Pokemon Cards
During the hearing, Rep. Ritchie Torres asked Gensler if purchasing a tokenized Pokemon card on a digital exchange via blockchain would be considered a security transaction. Gensler responded that more information would be needed to make that determination.
Bitcoin ETFs
Gensler was questioned about the SEC’s delay in approving spot bitcoin ETFs. Lawmakers referred to a recent Grayscale decision and urged the SEC to greenlight these products. Gensler stated that the agency was still considering the matter.
Hot Take: Lawmakers Challenge SEC Chair on Cryptocurrency Regulation
SEC Chair Gary Gensler faced tough questions from lawmakers regarding the regulation of cryptocurrency during a House committee hearing. The topics discussed included the classification of bitcoin as a security, the potential approval of spot bitcoin ETFs, and whether Pokemon cards could be considered securities. Gensler clarified that bitcoin is not a security and explained the SEC’s approach to determining securities status. He also faced criticism from lawmakers who accused him of taking a biased approach towards digital assets. The hearing highlighted ongoing debates and challenges surrounding cryptocurrency regulation in the United States.
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