JUST

Patrick

Chair

Gary

<p>McHenry confronts Gensler over SEC’s FTX transparency</p> 
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<h2 style="text-align: center;" id="strong-mchenry-s-accusations-strong"><strong>McHenry’s Accusations</strong></h2> 
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<p>US Congressman Patrick McHenry has been vocal about his concerns regarding the transparency of SEC Chair Gary Gensler, particularly in relation to the FTX cryptocurrency exchange and its CEO, Sam Bankman-Fried.</p> 
<p>During a session with the US House Financial Oversight Committee, McHenry did not mince words. He criticized Gensler for <a href="https://cointelegraph.com/news/house-committee-threatens-subpoena-ftx-documents">not being forthcoming</a> about his interactions with FTX and its CEO. The Congressman stressed that despite multiple requests to the SEC, the committee still lacked crucial non-public documents. McHenry warned that the committee’s patience was dwindling and reminded Gensler that the SEC was not exempt from the law.</p> 
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<h2 style="text-align: center;" id="strong-the-ftx-controversy-strong"><strong>The FTX Controversy</strong></h2> 
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<p>The SEC actively enforces digital asset regulations. Yet, under their supervision, a major financial crime involving the FTX exchange unfolded. Subsequently, the SEC charged Bankman-Fried for defrauding investors. This led to a criminal indictment by the US Department of Justice. Now, as Bankman-Fried’s trial nears, Congress eagerly seeks clarity on the SEC’s actions regarding the FTX investigation.</p> 
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<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">JUST IN: 🇺🇸 SEC Chair Gary Gensler says <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> is not a security, but refuses to say it’s a commodity. <a href="https://t.co/JQaTK8xPEl">pic.twitter.com/JQaTK8xPEl</a></p> 
 <p>— Watcher.Guru (@WatcherGuru) <a href="https://twitter.com/WatcherGuru/status/1707058072223363209?ref_src=twsrc%5Etfw">September 27, 2023</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h2 style="text-align: center;" id="strong-requests-for-transparency-strong"><strong>Requests for Transparency</strong></h2> 
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<p>McHenry, along with Representative Bill Huizenga, initiated an investigation into the SEC’s approach to the FTX case. They sought internal communications and other documents related to the charges against FTX and its interactions with the Justice Department. Despite multiple letters and reminders, the SEC has been accused of delaying and not providing the requested documents.</p> 
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<h2 style="text-align: center;" id="strong-potential-subpoena-strong"><strong>Potential Subpoena</strong></h2> 
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<p>During the hearing, McHenry’s frustration was clear. He highlighted his hesitation, noting he didn’t want to be the first chairman to subpoena the SEC. This action would be a major step up. Consequently, he fervently asked Gensler for more transparency. He also wanted quicker responses to Congress’s requests. Otherwise, McHenry cautioned, the committee could take tougher actions, highlighting the situation’s seriousness.</p> 
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<h2 style="text-align: center;" id="strong-other-concerns-strong"><strong>Other Concerns</strong></h2> 
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<p>While the FTX issue dominated the hearing, other topics were also discussed. Ranking member Maxine Waters expressed concerns about the potential impact of a <a href="https://walletinvestor.com/magazinadmin/secs-request-to-inspect-binance-us-declined-by-us-judge/">US government shutdown</a> on the SEC’s operations. Gensler responded that a significant portion of the SEC staff might face furloughs if an agreement on government spending wasn’t reached soon.</p> 
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<h3 style="text-align: center;" id="strong-summary-strong"><strong>Summary</strong></h3> 
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<p>The tension between Congressman McHenry and SEC Chair Gensler highlights the challenges and complexities of regulating the rapidly evolving digital asset industry. As the trial of Bankman-Fried approaches, all eyes will be on the SEC and how it navigates these turbulent waters.</p> 
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Gensler’s SEC Grilled on FTX Transparency by McHenry

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