Ethereum
House’s McHenry Accuses US SEC Chief Gensler of Misleading Congress on Ethereum (ETH)
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler was accused of misleading Congress by Rep. Patrick McHenry, chairman of the House Financial Services Committee, who said that Gensler’s agency already knew it considered Ethereum’s ether a security before attending a hearing and refused to answer that question.
“Chairman Gensler has refused to answer questions regarding the SEC’s classification of ether,” McHenry said in a statement published on. “New court filings show this was an intentional attempt to misrepresent the commission’s position.”
The ranking of (ETH), the second-largest cryptocurrency by market capitalization, is a major question looming over U.S. oversight of digital assets, and it is being fought on several legal fronts. While ETH is a security that must be registered and regulated by the SEC, many other tokens may also fit this definition.
Documents in Consensys newly filed lawsuit against the SEC describe how the agency was conducting an investigation into the nature of ETH days before Gensler testified in April 2023. Consensys is suing the agency ahead of an expected SEC enforcement action.
But McHenry’s argument suggests that the agency’s investigation amounts to a real political stance.
SEC spokespeople did not immediately respond to a request for comment on McHenry’s accusations.
According to the SEC’s investigative manual, an investigation “is appropriate and necessary to determine whether a violation of the federal securities laws may have occurred or is likely to occur,” crypto attorney Grant Gulovsen emphasized. at CoinDesk. This is not a conclusion in itself, so the SEC may not have made a formal decision on how ETH should be categorized.
“I agree with Consensys that if the SEC determined all offers and sales of ETH involving securities transactions, it would be devastating to the entire crypto industry, but since the SEC does not hasn’t done it yet, why try to force the issue?” » said Gulovsen.