House Committee slams SEC Chair Gary Gensler over inconsistent approach to crypto regulation

On April 18, during a hearing on SEC oversight, Representative McHenry brought attention to the lack of clarity in digital asset regulation, criticizing the commission’s regulation by enforcement approach. He expressed concern about the “punishing” effect this approach had on digital asset firms without a clear compliance path.

McHenry also pressed SEC Chair Gary Gensler on whether Ether ETH should be classified as a security or a commodity, citing the need for regulatory clarity. However, McHenry repeatedly interrupted Gensler’s responses, pointing to the SEC chair’s classification of Bitcoin as a commodity.

McHenry also hinted at private discussions on Ether prior to the hearing, highlighting the ongoing debate and uncertainty surrounding digital asset regulation in the United States.

Specifically, the congressman asked whether the digital asset should be classified as a security under the SEC’s jurisdiction or a commodity under the Commodity Future Trading Commission’s purview.

Following the hearing, the House Committee on Financial Services has sent a scathing letter to SEC Chair Gary Gensler, accusing him of having a hypocritical stance on digital asset regulation.

The letter takes issue with Gensler’s recent comments about firms needing to “come in and register” with the SEC, citing a lack of clear regulatory guidelines.

The committee argues that Gensler’s push for registration is a “willful misrepresentation” of the SEC’s nonexistent registration process, adding to the growing debate on the need for clear regulatory guidelines for digital assets in the United States.

This is a developing story, and further information will be added as it becomes available.

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