SEC's statement on Bitcoin: Not a security
US Securities and Exchange Commission (SEC) Chairman Gary Gensler reiterated that Bitcoin is not a “security” and avoided calling the cryptocurrency a “commodity.” US Securities and Exchange Commission (SEC) Chairman Gary Gensler answered questions and criticisms from representatives during a hearing held in the US House Financial Services Committee that lasted approximately 4.5 hours. Committee Chairman Republican Representative Patrick McHenry harshly criticized Gensler, claiming that the SEC’s current approach to rulemaking jeopardizes the integrity of financial markets and puts investors at risk. McHenry, who noted the need for a comprehensive economic analysis of the proposed rules and their interactions, said that the Committee had not received any non-public documents from the SEC since its request for documents in February. Congressman Tom Emmer, known for his supportive approach to the crypto sector, made harsh statements about Gensler, claiming that Gensler was "attacking" the crypto industry and "harming the competitive sector for his own desires and personal purposes." Congressman Warren Davidson also said, "I wish the Biden administration had fired you." "The crypto industry is full of fraud" SEC Chairman Gensler reiterated that Bitcoin is not a "security" and avoided describing the cryptocurrency as a "commodity." Stating that the crypto industry is full of "fraud, manipulation and fraud" and that investors are harmed by the lack of compliance in this area, Gensler reminded that they have filed numerous lawsuits on this issue to protect the American people. Gensler also answered the question about the overturning in court of the SEC's decision to reject the spot Bitcoin ETF application of crypto asset management company Grayscale, claiming that "an ETF based on Bitcoin lacks sufficient oversight." Gensler, who did not give a clear answer on this issue, stated that the evaluation process for the court decision on the Bitcoin ETF application is ongoing. In the event of a government shutdown, a "skeleton" staff will work Gensler stated that 92-93 percent of its approximately 5 thousand employees will be furloughed in the event of a possible federal government shutdown in the US, and that the number of employees will be reduced to a "skeleton" staff. Gensler, who pointed out that there will be no institution to supervise the market with full force during this period, stated that the notification, complaint and referral lines will remain open. Gensler noted that the closure will also prevent the approval of companies to go public, and that companies should take action before Friday if they decide to go public or increase their offerings. Regarding the rule that will require publicly traded companies to disclose detailed emissions data and climate risk strategies, Gensler said that the SEC is not a regulator on climate, but they are responsible for ensuring that publicly traded companies make truthful disclosures. Gensler stated that he believes that technologies such as artificial intelligence and machine learning are transformative, but argued that there is a potential for conflict due to robot investment advisors and brokers “putting their own interests ahead of investors’ interests.” Members of Congress call on SEC for “spot Bitcoin ETF” On the other hand, ahead of the hearing, Republicans on the Committee sent a letter to Gensler requesting that stakeholder feedback on the SEC’s regulatory agenda be considered. Republican representatives requested that the SEC pause the finalization and implementation of the rules until the impacts are assessed and sufficient time is allowed for compliance. On the other hand, some representatives called on SEC Chairman Gensler to approve spot Bitcoin ETF applications.