Genslers Ineptitude Slated by US Congress

U.S. SEC Chair, Gary Gensler, found himself under intense scrutiny during a recent congressional hearing, facing accusations and probing questions regarding his agency’s regulatory stance on various matters, including Bitcoin and Pokemon trading cards. Here are five notable moments from his evasive testimony:

I cross-examined @SECGov Chair Gary Gensler about the term 'investment contract', which is key to determining his authority over crypto.

Gensler struggled to answer basic questions like whether an investment contract requires a contract. His evasions are deafening and damning. pic.twitter.com/EJcZEHiKGL

— Rep. Ritchie Torres (@RepRitchie) September 27, 2023

1. Accusations of “Kneecapping” Capital Markets

U.S. Representative Andy Barr likened Gensler to Tonya Harding, accusing him of “kneecapping” the U.S. capital markets with excessive regulatory measures. Barr referenced a previous statement by Gensler praising the U.S. as a gold medalist in capital markets and accused him of undermining this status with an “avalanche of red tape.”

2. Calls for Termination

Representative Warren Davidson expressed his wish for the Biden administration to terminate Gensler’s position, accusing him of promoting a “woke” political and social agenda and abusing his role as the SEC’s chair. Davidson emphasized his support for the SEC Stabilization Act, hoping it could facilitate Gensler’s removal.

3. Bitcoin: Security or Commodity?

Gensler faced questions from Patrick McHenry, Chair of the U.S. House Committee on Financial Services, regarding the classification of Bitcoin. Gensler stated that Bitcoin did not meet the Howey test, implying it isn’t a security. However, he avoided confirming whether Bitcoin is a commodity, stating that such a test is outside the scope of U.S. securities laws.

4. Pokemon Cards as Securities?

Representative Ritchie Torres probed Gensler on his interpretation of investment contracts, questioning whether purchasing a Pokemon trading card or a tokenized Pokemon card on a digital exchange constitutes a securities transaction. Gensler’s inconclusive responses were labeled by Torres as “deafening and damning” evasions.

I cross-examined @SECGov Chair Gary Gensler about the term 'investment contract', which is key to determining his authority over crypto.

Gensler struggled to answer basic questions like whether an investment contract requires a contract. His evasions are deafening and damning. pic.twitter.com/EJcZEHiKGL

— Rep. Ritchie Torres (@RepRitchie) September 27, 2023

5. Coinbase’s Silent Protest

Amidst the heated exchanges, observers noted a Coinbase “Stand With Crypto” logo positioned behind Gensler, symbolizing the ongoing campaign led by Coinbase to advocate for cryptocurrency legislation in the United States. This campaign coincided with a “Stand with Crypto Day” event in Washington, D.C. Emphasizing the need for improved cryptocurrency innovation and policy.

Conclusion

Gary Gensler’s testimony before Congress highlighted the ongoing tensions and debates surrounding the regulatory landscape of securities and cryptocurrencies. The intense cross-examinations and the visible presence of crypto advocacy initiatives underscore the divergent views on the future of digital assets and the regulatory frameworks governing them. The dialogue, albeit confrontational, reflects the pressing need for clarity and consensus in the evolving financial ecosystem.