SEC Under Fire: Ethereum Files Reveal All

The SEC and Chairman Gary Gensler are once again in the spotlight after House Financial Services Committee Chairman Patrick McHenry came forward with serious allegations. This comes in the wake of recent controversies surrounding U.S. regulators. include A federal judge reprimanded regulators for “gross abuse” of power. Adding fuel to the fire, unredacted filings from Ethereum company ConsenSys revealed that Gensler believed ETH was a security for at least a year.

But McHenry highlighted an even more shocking revelation, saying there is evidence that Gensler deliberately misled both Congress and the public during his testimony last April. . Citing new court filings, Gensler avoided a definitive answer on Ethereum’s classification as a security, but McHenry now argues that the move intentionally leaves the regulator’s position vague. It is claimed that it was done.

This episode highlights the urgency for Congress to pass the bipartisan FIT for the 21st Century Act to provide a clear regulatory framework and strong consumer protections for digital asset markets. Republican committees will continue to hold Gary Gensler’s SEC accountable for regulatory overreach that stifles innovation, leaves American consumers unprotected, and endangers national security.

McHenry said the discrepancy between Gensler’s previous claims and the SEC’s longstanding position not only raises questions about the regulator’s consistency and transparency, but also raises questions about the agency’s stance on digital asset regulation. This approach increasingly appears to be regulatory, arguing that it exemplifies the “arbitrary and capricious” nature of By coercion rather than clear rules.

ConsenSys faces SEC in court

McHenry emphasizes the need for legislative action against what he said is regulatory overreach that threatens innovation without protecting American consumers. He is advocating for swift passage of the bipartisan 21st Century FIT Act, which aims to establish a definitive regulatory framework and strengthen consumer protections in digital asset markets.

Earlier, Ethereum company ConsenSys filed a lawsuit with the SEC. Following Wells’ notice, blockchain companies challenged the regulator’s approach, arguing that the ad hoc enforcement action was an overreach of its powers. Wells’ notice is seen as a formal indication that the agency may be sued for failing to comply with required laws.

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