SEC Chair “knowingly misled” Congress over Ethereum status, House's McHenry says
- The Chair of the US Financial Services Committee issued a statement on SEC Chair Gary Gensler’s refusal to comment on the classification of Ether.
- Chairman Patrick McHenry says that new evidence shows Gensler “misled” the Congress.
- Classifying Ethereum as a security contradicts previous statements of the SEC and Chair Gensler, McHenry says.
US Financial Services Committee Chair Patrick McHenry slammed Securities and Exchange Commission (SEC) Chairman Gary Gensler for his stand on Ethereum (ETH). McHenry issued a statement on Tuesday saying there is evidence that shows Gensler “knowingly misled” the Congress on Ethereum’s status.
With the Ethereum Spot ETF application deadline drawing close, market participants are keeping an eye on the SEC’s stance on Ether about whether the altcoin should be considered a security.
Chair Gensler may have knowingly misled Congress on Ether’s status
A statement issued by US Financial Services Committee Chair Patrick McHenry points towards Chair Gensler’s actions on Ether’s status as a security. Chair McHenry said he has found evidence that points towards the SEC Chair having knowingly misled Congress on Ethereum’s status.
Chair Gensler gave testimony to the Financial Services Committee in April 2023, when he refused to answer questions regarding the SEC’s classification of Ether, per McHenry’s statement.
#ICYMI: New court filings indicate that @SECGov Chair Gary Gensler knowingly misled Congress when pressed on the classification of #ETH at a @FinancialCmte hearing to conduct oversight of his agency.
— Patrick McHenry (@PatrickMcHenry) April 30, 2024
Read my full statement pic.twitter.com/8osMpbY6Iu
In his testimony, as seen on the SEC website, Chair Gensler said:,
Congress gave the Commission a mandate to protect investors, regardless of the labels or technology used. Nothing about the crypto markets is incompatible with the securities laws. As I’ve said numerous times, the vast majority of crypto tokens are securities.
The testimony has no direct reference to Ethereum or its status as a security.
"New court filings show this was an intentional attempt to misrepresent the Commission’s position,” Chair McHenry says, adding that in the event that the SEC classifies Ethereum as a security, it would contradict previous statements of the commission and Chair Gensler.
The US Financial Services Committee Chairman highlights the agency’s “arbitrary and capricious nature” and cites the above example as a regulation-by-enforcement approach from the SEC.
He argues that the Committee continues to hold Chair Gensler accountable for SEC’s regulatory overreach.
The SEC has until June 23 as the final deadline to make its decision on the approval or denial of a Spot Ether ETF.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
