- SEC’s Gensler fails to clarify Ether’s status.
- McHenry criticizes SEC’s aggressive actions against crypto.
- US Congressman proposed SEC leadership reform bill.
The Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has stirred up the cryptocurrency community with his recent comments on the status of Ether as a security. While Gensler earlier suggested that “all crypto assets but Bitcoin are securities,” he has hesitated to label Ether as such explicitly, leaving many crypto experts puzzled and concerned about the regulatory uncertainty surrounding the popular cryptocurrency.
Crypto lawyers, why didn’t he just say ether is a security? He’s implied exactly that multiple times — “all crypto assets but Bitcoin are securities.” I don’t get why he’s hemming and hawing https://t.co/TViC5jkbwu
— Laura Shin (@laurashin) April 18, 2023
This allegedly happened during a recent interview of the SEC chief by Representative Patrick McHenry in Congress. In the heated exchange, McHenry pressed Gensler to clarify whether Ethereum (ETH) should be considered a commodity or a security under SEC regulations. Gensler appeared unable to answer clearly, which led to a contentious back-and-forth between the two.
Gary Gensler, the chair of the SEC, was interviewed in Congress today.
— unusual_whales (@unusual_whales) April 18, 2023
During the interview in Congress, Rep. Patrick McHenry, who chaired the committee, expressed his frustration with the SEC for its aggressive enforcement actions against crypto companies. McHenry blasted the SEC for launching over 50 such actions, which he claimed were stifling innovation and impeding the crypto industry’s growth.
The exchange highlighted the deep divide between regulators and some lawmakers over how to regulate and oversee the burgeoning crypto market and the need for a clearer regulatory framework that can balance innovation with investor protection.
This was also followed by Warren Davidson, a US Congressman’s remarks suggesting the introduction of legislation to reform the SEC’s leadership structure. The proposed legislation seeks to remove the Chairman of the SEC from their position and replace the role with an Executive Director who would report to the Board, where all authority would reside. The bill would also prohibit former Chairs of the SEC from being considered for the role.