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During his congressional testimony on Wednesday, Gary Gensler, the U.S. Securities and Exchange Commission (SEC) chairman, persisted in his criticism of the cryptocurrency industry.<\/p>\n
Despite partisan divisions and ongoing legal battles, Gensler did not disclose the SEC\u2019s next moves regarding spot bitcoin exchange-traded funds (ETFs) following a recent legal setback.<\/p>\n
Chair Gary Gensler continued his combative stance<\/a> against what he called crypto \u201chucksters.\u201d During his remarks before the House Financial Services Committee, Gensler accused digital assets companies of being reckless with customer assets, particularly in the commingling of funds, which he described as a recipe for disaster.<\/p>\n Gensler also touched on the recent court ruling that sent the SEC back to reconsider<\/a> its stance on spot Bitcoin ETFs. In August, a D.C. Circuit Court of Appeals judge urged the SEC to reevaluate its decision<\/a> in the Grayscale Investments case, stating that the agency\u2019s rejection had been \u201carbitrary and capricious.\u201d<\/p>\n However, Gensler\u2019s testimony left the industry in suspense, with no clear indication of the SEC\u2019s next move or the timeline for its decision.<\/p>\n While the crypto industry remained a central topic of discussion, much of the hearing also revolved around non-crypto issues, including the upcoming threat of a government shutdown<\/a> and concerns over the SEC\u2019s focus on climate-related matters.<\/p>\n Chairman Patrick McHenry also criticized the SEC\u2019s losing streak in court and accused the agency of aggressively targeting the digital assets ecosystem. He argued that this approach was causing confusion and long-term damage to the industry. In response, Gensler emphasized that Bitcoin is not considered a security.<\/p>\n Adding to the uncertainty surrounding the SEC\u2019s operations, Gensler hinted at the potential impact of a government shutdown scheduled for next week. He expressed concern that the agency\u2019s staffing could be reduced by more than 90%, with only senior leadership remaining operational. This led to delays in day-to-day reviews and approvals of SEC filings.<\/p>\n During the hearing, Rep. Stephen Lynch also questioned Gensler about the SEC\u2019s ongoing legal dispute with Ripple, where a judge ruled that the company had not violated federal securities law in selling XRP to retail investors. Gensler declined to comment on the matter, citing its ongoing<\/a> status before the court.<\/p>\nChairman McHenry Criticizes SEC\u2019s Approach<\/h2>\n
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