U.S. Representative Patrick McHenry criticizes the U.S. Securities and Exchange Commission’s (SEC) regulation approach towards Ethereum, citing inconsistencies and calling for legislative clarity.
- McHenry accuses SEC Chair Gensler of misleading Congress regarding Ethereum’s classification.
- Urges passage of bipartisan legislation to regulate digital assets.
- Highlights previous legislative efforts for clarity in the crypto sector.
Patrick McHenry, Chairman of the U.S. House Financial Services Committee, voiced criticism towards the U.S. Securities and Exchange Commission’s (SEC) recent investigation into Ethereum. The investigation alleges that Ethereum (ETH) may be categorized as a security, sparking concerns within the crypto community and regulatory circles alike.
McHenry’s statement underscored what he perceives as inconsistencies within the SEC’s approach, particularly pointing fingers at SEC Chair Gary Gensler. McHenry accused Gensler of deliberately avoiding questions regarding the SEC’s stance on Ethereum during previous congressional hearings, suggesting an intentional misrepresentation of the Commission’s position.
Highlighting the potential ramifications of classifying Ethereum as a security, McHenry emphasized the need for legislative action to provide a clear regulatory framework for digital asset markets. He referenced the bipartisan FIT for the 21st Century Act, which aims to offer robust consumer protections and regulatory clarity in the evolving landscape of cryptocurrencies.
McHenry’s stance aligns with his previous advocacy for regulatory clarity in the crypto sector. He emphasized the significance of legislative measures such as the FIT for the 21st Century Act and the Clarity for Payment Stablecoins Act, both of which received attention and support within the House Financial Services Committee.