The U.S. SEC Chairman Gary Gensler's House hearing will start 40 minutes later. In his pre-announced testimony, he said that "nothing in the crypto market is in compliance with securities law" because most cryptocurrencies are securities. Almost all members of the Congress are pro-Crypto, criticizing the current targeted law enforcement and negative accusations against the industry, and the subtext is that the SEC should first clarify the regulatory framework and let crypto companies gather in the United States as much as possible. Except for Gensler, no one mentioned the risks brought by the highly speculative nature of cryptocurrencies. Gensler was unwilling to say which coins, including ETH, were securities after repeated questioning, even though the SEC indictment accused a bunch of coins including ETH, TRX, DASH, and ALGO of being securities. It seems that he knew that this topic would cause controversy and did not want to jump into the pit.
Many members of Congress criticized Gensler and the SEC for their poor supervision of FTX and LUNA, and believed that the SEC is now too strict with onshore and compliant Coinbase and Paxos, but too lax with offshore ones. This has led to a lose-lose situation for both American investors and companies, and they asked the SEC to review and hold Gensler accountable. One member of Congress said that investors should be allowed to make their own choices to protect them, and you should not make judgments for investors just because you say that something is risky. One member of Congress sarcastically said that Gensler could not justify the cryptocurrency without holding any coins.
Earlier today, it was reported that the chairman of the U.S. SEC refused to give a clear answer as to whether ETH is a commodity or a security.
