SEC’s Gary Gensler Dodges Questions About Whether Ethereum Is A Security


U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler gave a direct response during a congressional oversight hearing on Tuesday when asked whether Ether, the native cryptocurrency of the Ethereum blockchain, is a security or a commodity. did not give

See related story: CFTC Chairman Calls Ethereum A Commodity In Contrast To SEC Chairman Gensler’s Position

quick facts

  • Gensler addressed the House Financial Services Committee (HFSC) in person for the first time since October 2021. This was before the collapse of FTX and crypto-friendly banks like Signature, Silicon Valley Bank, and Silvergate.

  • Gensler failed to give a clear and direct answer to the chairman of the committee, Rep. Patrick McHenry, who asked whether Ether, the second-largest cryptocurrency by market capitalization, was a security. bottom.

  • “Actually, all securities are commodities under the Commodity Exchange Act. answered.

  • Regulators and prosecutors have expressed contrasting views on how Ether is classified. The New York Attorney General recently said it should be a security, but Commodity Futures Trading Commission Chairman Rostin Behnham insisted it was a commodity.

  • Gensler has hinted many times that cryptocurrencies based on proof-of-stake consensus mechanisms such as Ether may be considered securities.

  • In May 2022, Gensler publicly labeled Bitcoin, the world’s largest cryptocurrency by market capitalization, as a commodity.

  • Gensler told the HFSC on Tuesday that the SEC needs more resources and bodies to regulate the crypto-asset class.

  • Late last month, Gensler testified before the Subcommittee on Financial Services and General Government, asking Congress for $2.4 billion in funding to step up its crackdown on cryptocurrencies.

See related story: SEC Chairman Gensler: No Plans To Ban Cryptos, Says It’s ‘Up To Congress’

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