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Five shortcomings in Gary Gensler’s evasive congressional testimony

5 lowlights of Gary Gensler’s evasive testimony before Congress

The head of the U.S. SEC was questioned on whether buying Pokemon trading cards counts as a security transaction and whether bitcoins are commodities.

Blamed for “kneecapping” capital markets in the United States and blasted for evading issues about Bitcoin BTC

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Securities and Exchange Commission Chair Gary Gensler appeared to have faced a barrage of questions from Congress this week, including questions about Pokemon cards.

The U.S. SEC chairman was once more in front of lawmakers on September 27 during a scheduled hearing to talk about his organization’s regulation of the markets.

Here are some of the hearing’s high points and poor points.

”The Tonya Harding of securities rules, I tell you.”

Representative Andy Barr of the United States employed one of the more colorful allegories when he accused Gensler of “kneecapping” the American financial markets with bureaucratic red tape.

“With the avalanche of red tape coming out of your commission, you are kneecapping the U.S. capital markets.”
Barr is probably alluding to an incident in which American figure skater Tonya Harding hired an attacker to assault Nancy Kerrigan in the run-up to the 1994 Winter Olympics and the United States Figure Skating Championships. In the end, Kerrigan did not take part in the American championships.

I’d like the Biden administration to tell you to go.
Representative Warren Davidson similarly lambasted Gensler at the same time, saying he hoped the Biden administration would dismiss him.

“I wish the Biden administration would say, ‘You’re fired,'” Davidson remarked.

The U.S. representative continued by expressing his optimism that the SEC Stabilization Act, which he and Representative Tom Emmer introduced, will enable this to occur.

“Every day you’re acting as the chairman,” he said, “you’re making the case for this measure [the SEC Stabilization Act].

There was no opportunity for Gensler to reply.

Reiterating that Bitcoin is not a security

Gensler later bowed to pressure and said that Bitcoin didn’t pass the Howey test when asked whether it is a security by Patrick McHenry, the chairman of the U.S. House Committee on Financial Services.

Gensler stated that Bitcoin does not meet the Howey test, which is the national legislation, meaning that it is not a security.

Gensler avoided responding when McHenry stated that Bitcoin must be a commodity, claiming that the test for that is outside the scope of this discussion.

Additionally, Henry claimed that Gensler tried to “choke off the digital asset ecosystem” and that he hid from Congress information about the SEC’s ties to FTX and its former CEO, Sam Bankman-Fried.

Additionally, Gensler was not given the opportunity to refute McHenry’s assertions.

Are Pokemon trading cards securities? It varies.

During this meeting, Representative Ritchie Torres grilled Gensler on his definition of an investment contract.

Torres challenged Gensler by posing the question of whether buying a real Pokemon trading card counts as a securities transaction.

The 14-month campaign for the Coinbase-led project began in August. It seeks to encourage the enactment of cryptocurrency laws in the US.

Additionally, Coinbase sponsored “Stand with Crypto Day,” which was held in Washington, D.C., on September 27 in support of improved bitcoin innovation and regulation.

Magazine: The SEC designates 67 cryptocurrency securities, Binance and Coinbase go to court: June 4–10, Hodler’s Digest


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