As a seasoned crypto investor with over two decades of experience in the financial market, I find myself closely following the developments at the SEC, particularly the upcoming testimony of all five commissioners before the House Financial Services Committee. My interest is not only fueled by the potential impact on the crypto industry but also by the ongoing controversy surrounding SEC Chair Gensler and his alleged violation of federal law in the hiring process.
Next week, all five members of the United States Securities and Exchange Commission (SEC) are expected to appear before the House Financial Services Committee. Previously, it was thought that only the agency’s chairman, Gary Gensler, would provide testimony. However, FOX Business Journalist Eleanor Terrett shared on X that the full SEC leadership will be testifying instead.
SEC Chair Violates Federal Law
Among those who were previously with the Securities and Exchange Commission are Dan Gallagher, who served as an SEC Commissioner from 2011 to 2015, and Michael Liftik, who was once Deputy Chief of Staff to former SEC Chair Mary Jo White. Currently, Gallagher holds the position of Chief Legal Officer at Robinhood Markets, while Liftik is a Partner at Quinn Emanuel Urquhart & Sullivan, LLP.
For the first time in the past five years, all five commissioners of the SEC (Securities and Exchange Commission) will simultaneously appear before the House Financial Services Committee. This event takes place as Gensler, one of the commissioners, is under scrutiny for allegedly breaking the law by illegally influencing the hiring process. The accusation is that he has violated federal law by tampering with the hiring exercise.
The Chair of the SEC is alleged to have given preferential treatment in hiring based on political allegiances, leaning towards candidates from a specific group. This unlawful practice violates the Civil Service Reform Act of 1978. Lawmakers are actively working to address this issue, and it’s been speculated that Gensler may face dismissal as the investigation continues.
The SEC Chair must still appear separately before the House next Wednesday.
Multiple parties are taken aback by the revelation that five commissioners from the Securities and Exchange Commission (SEC) will be attending their hearing. Even the crypto lawyer known as MetaLawMan voiced his surprise on platform X, pondering if Patrick McHenry, the chair of the House Financial Services Committee, might question the SEC Chair about Ethereum‘s security status during the meeting.
Is Ethereum Securities or Commodity?
The discussion about whether Ethereum is a security or a commodity has gone on for several years. A few months ago, just before the SEC greenlighted spot Ethereum ETFs, MetaLawMan referenced the time when New York Attorney General (NYAG) Letitia James stated that Ethereum is a security. The NYAG likened ETH to Terra (LUNA) and associated algorithmic stablecoin UST, which crashed in 2022.
James went on to explain Ethereum as a financial investment with its returns depending mainly on the work done by external programmers, contributing to the earnings of its users.
In June 2024, when the Securities and Exchange Commission (SEC) finally gave its green light for trading the Ethereum ETF, it seemed as though the classification of this altcoin had become more defined. Yet, it appears that the Chair of the SEC still has a somewhat unclear view regarding the second-largest cryptocurrency in terms of market capitalization.
Many crypto supporters eagerly anticipate Gensler’s departure from the Commission due to the ambiguity that marked his term. If Gensler were to step down from his role as SEC Chair, it might open the door for SEC Commissioner Hester Peirce to informally assume leadership of the market regulator, according to MetaLawMan’s perspective.
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2024-09-17 12:32