SEC Chair Gary Gensler Refuses to Answer if Ethereum (ETH) is a Security During Congressional Hearing

While testifying before Congress today, SEC Chair Gary Gensler refused to answer if Ethereum (ETH) was a commodity or a security. Moreover, the hearing before the House Financial Services Committee regarded potential SEC oversight in regulatory action taken against the digital asset industry.

Within his pre-hearing testimony, Gensler restated his opinion that crypto assets are compatible with existing securities laws. Conversely, Gensler refused to offer a straight answer to questions on the security status of Ethereum.

Gensler Confronted on Crypto Security Claim

The chairman of the US Securities and Exchange Commission was called before Congress today. Specifically, the hearing was centered around action taken by the regulator regarding the digital asset industry.

Within that hearing, SEC Chair Gary Gensler refused to say if Ethereum (ETH) is a commodity or a security. Indeed, Gensler faced questions from House Committee Chairman Patrick McHenry. Subsequently, in answering the question regarding this, Gensler replied, “It depends on the facts of the law.” 

Crypto Crackdown is Just Getting Started, Says SEC Chair Gary Gensler
Source: Pensions & Investments

Amidst the hearing, Chairman McHenry noted that the SEC took 50 different enforcement actions against the digital asset industry. Furthermore, they did so without laying out clear rules of operation for stakeholders.

Specifically, McHerny stated, “Punishing crypto market companies when not clearly mentioning rules as to how they should comply is not ideal. Regulation by enforcement is not sustainable. Moreover, Republican lawmakers opposed Gensler’s approach to crypto regulation in a new letter arriving ahead of today’s testimony.