Here Are 10 Crypto-Related Remarks From SEC Chair in Latest Hearing, US Congressman Reacts

SEC chair Gary Gensler continues his combative stance against crypto assets in his recent testimony before the US House Financial Services Committee.

Gary Gensler, the United States Securities and Exchange Commission (SEC) chairman, testified yesterday before the House Financial Services Committee (FSC).

Gensler Maintains Combative Stance Against Crypto

The SEC chief spoke on various issues, including crypto, private funds, equity markets, climate risks, and artificial intelligence.

Although Gensler spoke on several issues, the major focus for most crypto enthusiasts is the SEC boss’ comments concerning the industry.

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Expectedly, Gensler continued his combative stance against crypto, stating that the industry has significant risks that require investors’ protection.

10 Main Points About Crypto 

We have highlighted ten main points from Gensler’s testimony at the recently concluded congressional hearing.

• The SEC boss refers to the crypto market as the “crypto asset securities market.” 
• He reiterates that most crypto assets satisfy the investment contract test – popularly referred to as the “Howey Test.”
• The SEC chair asserts that the majority of crypto assets are subject to securities laws.
• Gensler says Bitcoin (BTC), the world’s largest crypto by market cap, is not a security but refused to clarify whether it is a commodity.
• He insists that “most crypto intermediaries,” including exchanges, must comply with the US securities law since most tokens fall under the SEC’s regulatory purview.
• Gensler says the crypto market has experienced many problems due to industry players’ noncompliance.
• He emphasized that crypto-related companies have been relatively careless with users’ assets.
• Gensler says the SEC is actively considering its options following an August court ruling ordering the commission to rethink its decision on Grayscale’s application for a spot Bitcoin exchange-traded fund (ETF). 
• In response to whether an investment contract requires a contract, Gensler claims the Supreme Court in the Howey case did not make such a pronouncement.
• Responding to questions on whether crypto is a currency, the SEC boss says the emerging assets are not. Says they do not meet the three functions of money (units of accounts, store of value, and medium of exchange).

US Congressman Remarks

US Congressman Tom Emmer criticized Gensler’s inflexible approach towards crypto by saying that he is not an impartial regulator but has made a career for himself by being loyal to America’s largest institutions at the detriment of innovation, competition, and retail investors.

FACT: @GaryGensler is NOT an impartial regulator and his answers to my questions today prove just that.

He’s made a career of being relentlessly loyal to the largest institutions in America at the clear expense of innovation, competition, and everyday Americans. pic.twitter.com/owpRedbEoT

— Tom Emmer (@GOPMajorityWhip) September 27, 2023

Emmer voiced his apprehensions, highlighting that even the Federal Courts have acknowledged the negative impact on their constituents due to the actions taken by SEC Chair Gary Gensler. These courts have clearly stated that Gensler does not possess the legal authority to accomplish his goal of suppressing competition within the financial markets. Emmer also noted that Congress has repeatedly communicated this message to Gensler.

Tom Emmer also mentioned that SEC Chair Gary Gensler is not forthcoming about his dealings with FTX and Sam Bankman-Fried. Emmer has cautioned that a subpoena may be necessary to compel transparency in this matter.

On the other hand, U.S. Congressman Mr. Davidson has called for the removal of SEC Chair Gary Gensler, alleging abuse of power and promoting a politically biased agenda.

JUST IN: 🇺🇸 US Congressman calls to fire SEC Chair Gary Gensler, citing abuse of power and pushing woke political agenda. pic.twitter.com/LEr1SSH3ZQ

— Watcher.Guru (@WatcherGuru) September 27, 2023

He further said: “Frankly, you’re front-running Congress, you’re front-running the Courts, you’re even front-running your own administration, and no one has held you to account for that.” … “Congress hopefully will with the SEC Stabilization Act.”