Lawrence Damilola
All five commissioners of the U.S. Securities and Exchange Commission (SEC) will testify before the House Financial Services Committee next Tuesday. This is the first time since 2019 that all SEC members will appear together for a testimony session.
The specific topics to be discussed during the hearing are still unclear, but there is widespread speculation that crypto regulation could be addressed. Crypto expert James Murphy, also known as MetaLawMan, humorously speculated that SEC Chairman Gary Gensler might again face questions about whether Ethereum (ETH) should be classified as a security. The classification of digital assets like ETH has been a contentious issue with significant implications for the crypto industry and investors.
#NEW: Chairman @PatrickMcHenry announces a full committee hearing entitled "Oversight of the Securities and Exchange Commission."
— Financial Services GOP (@FinancialCmte) September 17, 2024
All five @SECGov Commissioners will testify together before the Committee for the first time since 2019.
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Gensler will testify separately in a session scheduled for Wednesday. This testimony comes as he is being investigated for alleged improper hiring practices. Reports suggest that he may have prioritized political leanings in hiring decisions, potentially violating the 1978 Civil Service Reform Act. Some lawmakers believe this could result in Gensler losing his position.
🚨SCOOP: The full five-member @SECGov Commission is preparing to testify in front of @FinancialCmte/@FSCDems next Tuesday. This will be the first time the whole commission, not just the chair, has testified together since 2019. @GaryGensler himself will testify alone in front of…
— Eleanor Terrett (@EleanorTerrett) September 17, 2024
MetaLawMan also speculated whether Patrick McHenry, Chairman of the House Financial Services Committee, will question Gensler again on whether Ethereum (ETH) should be classified as a security or a commodity.
“Wow—all 5 SEC Commissioners! What are the chances that Patrick McHenry asks Gary again whether ETH is a security or a commodity?” he commented. He also suggested that the testimony could serve as an informal audition for Commissioner Hester Peirce to play a more significant role within the agency should leadership changes occur.
Former SEC officials Dan Gallagher, Chief Legal Officer of Robinhood Markets, and Michael Liftik, a Quinn Emanuel Urquhart & Sullivan LLP partner, are also expected to testify. Gallagher served as SEC commissioner from 2011 to 2015, and Liftik held the role of Deputy Chief of Staff to former SEC Chair Mary Jo White. Both are anticipated to testify about the regulatory body’s current operations.
The legal status of Ethereum, whether it is a security or not, has been debated for years. Earlier this year, New York Attorney General Letitia James classified Ethereum as a security, comparing it to Terra (LUNA) and its associated stablecoin UST, which collapsed in 2022. Despite the SEC approving spot Ethereum ETFs in June 2024, Gensler has remained unclear regarding Ethereum’s categorization.
Read More
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
