Pokemon

Test

Bitcoin

Gary

In a highly anticipated House committee hearing, Securities and Exchange Commission (SEC) Chairman <a href="https://twitter.com/CryptoLawUS/status/1707037118298501326?s=20" rel="noopener noreferrer nofollow">Gary Gensler found himself in the hot seat as lawmakers</a> grilled him on the Commission’s approach to regulating crypto.&nbsp; 
<h2 id="b-the-debate-on-whether-bitcoin-is-a-security-b">The Debate On Whether Bitcoin is a Security</h2> 
In a recent hearing before the House Financial Services Committee, Chair Patrick McHenry, a Republican from North Carolina, sought clarity from Gensler, regarding the classification of Bitcoin. The discussion centered around whether Bitcoin should be classified as a security, invoking the well-known Howey Test as a reference point.&nbsp; 
The Howey Test, established through a 1946 U.S. Supreme Court case plays a pivotal role in determining whether certain transactions should be considered investment contracts subject to securities laws.&nbsp; 
During the hearing, Gensler emphasized that Bitcoin does not meet the criteria outlined in the Howey Test, implying that it should not be classified as a security. This clarification serves to dispel uncertainties surrounding the regulatory status of Bitcoin and aligns with the SEC’s stance on this cryptocurrency. 
<h2 id="b-the-delay-in-approving-a-bitcoin-etf-b">The Delay in Approving a Bitcoin ETF</h2> 
Lawmakers, including Rep. Nickel, pressed Gensler on the SEC’s delay in approving a spot Bitcoin Exchange-Traded Fund (ETF). They <a href="https://thecoinrise.com/grayscale-wins-court-battle-over-bitcoin-etf-approval-against-the-sec/" rel="noopener noreferrer nofollow">cited a recent decision by Grayscale Investments</a> as a reason to expedite the approval process.&nbsp; 
Gensler stated that the agency was still considering the matter, indicating that the SEC continues to grapple with the complexities of integrating cryptocurrencies into traditional financial markets. 
<h2 id="b-mchenry-threatens-subpoena-and-demands-transparency-b">McHenry Threatens Subpoena and Demands Transparency</h2> 
At the commencement of the hearing, McHenry made headlines by threatening Gensler with a subpoena. He accused Gensler of lacking transparency in his interactions with<a href="https://thecoinrise.com/ftx-bahamas-reportedly-files-for-chapter-15-bankruptcy-protection/" rel="noopener noreferrer nofollow"> the bankrupt crypto exchange, FTX</a>, and its former CEO, Sam Bankman-Fried.&nbsp; 
McHenry’s argument centered on the need for the SEC to recognize Congress as a co-equal branch of government and adhere to its oversight duties. This display of congressional authority underscores the growing importance of regulatory oversight in the crypto space. 
<h2 id="b-ritchie-torres-query-on-tokenized-assets-b">Ritchie Torres’ Query on Tokenized Assets</h2> 
In a notable moment during the hearing, Rep. Ritchie Torres inquired whether buying a tokenized Pokemon card on a blockchain-based digital exchange would constitute a security transaction. Torres sought clarification on whether such transactions should be subject to securities laws. “I’d have to know more,” Gensler said. 
The post <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com/sec-chairman-faces-congressional-heat-over-crypto-regulation/">SEC Chairman Faces Congressional Heat Over Crypto Regulation</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

SEC Chairman Faces Congressional Heat Over Crypto Regulation

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