Gensler recently answered questions during a White House Finance Committee hearing on Wednesday about whether the agency would approve a direct bitcoin exchange-traded fund and whether Bitcoin is a security.
Specifically, White House Financial Services Committee Chairman Patrick McHenry, representative of the state of North Carolina, began by asking Gensler about whether Bitcoin is a security or not. He cited Gensler saying in the past that “everything except Bitcoin” can be considered a security.
This question has caused a bit of controversy.
“You must answer my question now,” McHenry said. “This isn't that difficult.”
Gensler later confirmed that Bitcoin is not a security because it does not meet the “Howey Test,” the SEC's set of criteria used to XEM whether assets are securities.
McHenry also appeared to threaten the SEC chairman with an executive order at a hearing on Wednesday, accusing Gensler of not being transparent with Congress about his communications with cryptocurrency exchange FTX and its people. The founder and former CEO of the exchange is Sam Bankman-Fried.
Representative Tom Emmer, a representative from Minnesota, accused Gensler of applying a “harassment management approach” to digital assets.
“It's clear that he's working to centralize his power even as it suppresses opportunity for Americans and the financial future of this country,” Emmer said.
Gensler has asserted that most cryptocurrencies and crypto companies must comply with federal securities laws. He also said that the industry is largely non-compliant and rife with fraudulent schemes.
Additionally, Representative Ritchie Torres, a New York state representative, asked Gensler on Wednesday whether the purchase of a Pokemon card could be considered a securities transaction and therefore subject to securities laws. Are not. Gensler has confirmed that it is not.
Torres went on to ask, “If I buy a tokenized Pokemon card on a digital exchange via blockchain (referring to Non-Fungible Token), is that a securities transaction?”
“I had to get more information,” Gensler said.
Gensler was also questioned about why the SEC has not yet allowed the Bitcoin ETF Spot to be traded. Nickel, along with other lawmakers, sent a letter to the president, citing a recent decision by Grayscale as the reason for approving those products.
“Now that the SEC has the court's decision, does the SEC plan to approve existing direct bitcoin exchange-traded fund applications?” Nickel asked.
The SEC Chairman then replied that his agency is still XEM and cannot give an answer right now.
This move comes as the SEC continues to delay XEM applications to open Bitcoin ETF Spot and Ethereum ETF Futures funds after receiving letters from members of Congress asking the SEC to "immediately" approval of Bitcoin ETF Spot proposals.
Also Read:Ignoring US congressmen, SEC continues to do this with Bitcoin ETF Spot
Please join our information channels to discuss and keep up with the latest market developments:
