Five SEC Commissioners Set to Testify Next Week; Will Talks on Ether as a Security Surface?
The five US Securities and Exchanges Commission commissioners (SEC) will reportedly testify in a House Financial Services Committee hearing next week.
This hearing is part of a probe into the SEC and its chairman Gary Gensler's allegedly politicized approach to digital assets.
Some industry observers speculate that debates over Ethereum's status as a security will arise during the hearing.
SEC Commissioners to Testify in a House Committee HearingFox Business correspondent Eleanor Terret reported that all SEC commissioners will testify at a House Financial Services Committee hearing next week.
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
Since 2019, this is the first time all five commissioners will appear as witnesses before the House Financial Services Committee.
The SEC chairman, Gary Gensler, is also expected to appear before the committee next Wednesday. This hearing is supposedly related to a letter accusing the SEC and Gensler of illicit hiring practices.
Last week, GOP lawmakers said they found evidence that the SEC potentially violated the Civil Service Reform Act of 1978. They suspect the SEC may be considering candidates for top roles based on political affiliations.
Consequently, the Republican lawmakers asked Gensler to provide documents related to the agency's hiring processes. Some speculate Gensler could lose his job depending on the outcome of the investigations.
Other reports suggest that former SEC officials would testify against the agency in the Wednesday hearing on crypto oversight.
The House Financial Services Committee has scheduled a hearing on Wednesday, September 18, on Dazed and Confused: Breaking Down the SEC's Politicized Approach to Digital Assets."
Some influential figureheads will testify at this hearing. These include Dan Gallagher, Robinhood Markets' chief legal officer; Michael Liftik, a partner at Quinn Emanuel Urquhart & Sullivan LLP; and Teddy Fusaro, President of Bitwise Asset Management.
Michael Liftik and Dan Gallagher share a strong connection with the US SEC. Gallagher was SEC commissioner from 2011 to 2015. Similarly, Liftik worked at the SEC for nearly a decade as the deputy Chief of Staff and senior legal advisor to former Chair Mary Jo White.
According to the memorandum, the hearing will delve into the SEC's regulation-by-enforcement approach to crypto. The memo stated that under Gensler's leadership, the agency has pursued an enforcement and regulatory agenda to the detriment of the digital asset ecosystem."
It aims to look into the ambiguities regarding the SEC's classification of cryptocurrencies and NFTs as securities under the Securities Act of 1933.
Will Talks Concerning Ethereum as a Security Surface?There have been speculations about the possibility of the upcoming hearing delving into Ether's status as a security. Reacting to the forthcoming hearing, popular pro-crypto lawyer MetaLawMan expressed surprise that five SEC commissioners will testify.
Wow-all 5 SEC Commissioners!
What are the odds @PatrickMcHenry will ask Gary-one last time-whether ETH is a security or a commodity?
We can count on @RepRitchie for a few good zingers.
Could be @HesterPeirce's audition for the top spot if . . . well, you know.
Good work... https://t.co/QmoAXmoeli
- MetaLawMan (@MetaLawMan) September 17, 2024
The lawyer speculated whether the House Financial Services Committee will reopen discussions about whether Ether is a security or commodity. MetaLawMan also said the hearing might indirectly be SEC Commissioner Hester Peirce's audition for a top role at the agency.
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