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Gary Gensler shows nervousness in Congress when asked what Ethereum is

Particularly nervous, hesitant, and shaky, United States Securities and Exchange Commission (SEC) Chairman Gary Gensler was unable to give a clear answer to the United States Congress as to the nature of Ether (ETH), Ethereum’s cryptocurrency , is.

Questioned by Financial Services Committee Chairman Patrick McHenry on whether ETH is a security or a commodity, the head of the SEC questioned answered with some difficulties.

According to Gensler, categorizing a cryptocurrency as a security “depends on facts and the law.” This is because there is a group of tokens that are publicly offered by institutions and individuals. Profits and returns are also promised with such assets.

But when pressed by McHenry for his lack of clarity in the response to ETH’s categorization, the SEC chief said so I could not “prejudge” an asset like this.

“But you always anticipated that,” the Republican congressman then replied. “(…) The SEC has taken more than 50 enforcement actions,” or communications from Wells, he pointed out.

A Wells announcement is one step the SEC has taken to notify a public company what to examine. This is based on allegations that federal securities laws have been violated.

Gensler’s response refutes his own statements in the past, when he went so far as to point this out everything that is not Bitcoin (BTC) It’s a security that is, it can be regulated by that body.

As reported by CriptoNoticias, the regulator’s manager stated in February this year that most altcoins, like ether and the rest of cryptocurrencies, have mechanisms that need to be promoted. and thus attract investors. This is typical of a security, an asset regulated by the SEC.

Gensler’s actions in the United States Congress were questioned

Gensler wasn’t just rebuked by Congressman Patrick McHenry. Republican lawmaker Tom Emmer took his opportunity at the hearing to question the regulator. He told him that his public statements about cryptocurrencies they are not synonymous with regulations for the market.

At the hearing, Emmer recalled that the SEC has not published any rules that align with the existing regulatory framework and target the digital economy. Gensler recognized this and only hinted at it have made proposals to regulate the market of cryptocurrencies.

In that sense, Emmer questioned, the SEC’s president has delivered speeches and interviews that are typically seen as that regulator’s definitive position on an issue inherent in cryptoassets.

An example of this was when Gensler told an American media outlet that cryptocurrency service providers in the United States must register with this commission, as reported by CriptoNoticias.

That’s why Congressman Emmer Gensler made it clear “Your public statements are not regulations.” He also said it was irresponsible to expect the American people to take Gensler’s claims as a “substitute for rules.”

A proposal to remove Gensler and reorganize the SEC

Republican Congressman Warren Davidson introduced legislation to reorganize the SEC and remove Gary Gensler from the regulator’s chair. The foregoing is due to the “recording of failures” to protect investors and the rehearsals of “abuses of power”.

Davidson demonstrated The motion during Gensler’s interpellation before the House of Commons Financial Services Commission. The proposed regulation is apparently intended to “correct a long series of abuses”. committed by Gensler at the head of the SEC.

Congressman Warren Davidson introduced legislation to eliminate the role of SEC chairman. Spring: Twitter.

Notable among these abuses is that the SEC, headed by Gensler, grants very tight deadlines for the companies under investigation to defend themselves.

He also pointed out that the SEC has regulation for the cryptocurrency market, which assumes that the regulator You can review and monitor the crypto asset ecosystem as often as you like and without limits.

Likewise, says Davidson, Gensler initiated the SEC have “impossible suggestions” examine the structure of the stock market.

On top of that, the SEC is under Gensler’s direction It has a high staff turnover. “Dissatisfied people are leaving their offices, and dissatisfied companies and capital are leaving our country,” he said.

The proposal aims to eliminate the figure of President of the SEC

For all of the above, Congressman Warren Davidson’s proposal aims to do just that depose the current head of the SEC and replace it with a CEO figure– The latter responds to a board of directors in which all the powers of the regulatory authority reside.

The bill, introduced by Congressman Davidson, states that former SEC chairmen they are not suitable for the position of managing director.

According to Davidson, it’s a suggestion it spans the entire political spectrum of the United States. “Americans want democratic access to capital and participation by retail investors,” he said.

“You can’t just lock retail investors out of the markets and say it’s for their own good. Our markets need to function and thrive,” Davidson said.

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