House Financial Services Committee Chairman Accuses SEC Chair of Misleading Congress on Ethereum

Chairman of the House Financial Services Committee Patrick McHenry (R-NC) has entered the fray between financial regulators and the crypto industry, accusing SEC Chair Gary Gensler of misleading Congress about the agency’s stance on Ethereum. The SEC has been internally considering Ethereum (ETH) as an unregistered security for over a year, as revealed in a lawsuit filed by Ethereum software company Consensys.

Despite this internal consideration, Gensler has refused to comment on the SEC’s position on Ethereum, a major player in the crypto market. During a heated exchange with McHenry during a congressional hearing last year, Gensler avoided direct questions on the matter. However, recent court filings from Consensys show that the SEC had approved a formal order just days before to issue subpoenas related to the sale of various crypto assets, including ETH.

McHenry criticized Gensler for allegedly misleading Congress and misrepresenting the SEC’s position on Ethereum. He highlighted the discrepancy between the SEC’s public statements and private actions as evidence of the agency’s inconsistent approach to regulating digital assets.

Following his statement, McHenry’s office announced a hearing next week on the Subcommittee on Capital Markets, titled “SEC Enforcement: Balancing Deterrence with Due Process.” The purpose of the hearing has not been disclosed, but it is likely to address the ongoing debate between regulators and the crypto industry.

The escalating feud between regulators and the crypto industry continues to unfold, with McHenry’s accusations adding fuel to the fire. As the debate over the regulation of digital assets intensifies, the outcome of this conflict could have far-reaching implications for the future of cryptocurrencies.