The cryptocurrency industry in the United States is currently experiencing a period of significant regulatory scrutiny, with both the Commodities Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) ramping up their investigations. As a result, SEC Chair Gary Gensler has come under fire for what some believe is a negative stance towards cryptocurrencies.
During a recent hearing held by the House Financial Services Committee, Committee Chairman Patrick McHenry posed a question to Gensler regarding Ethereum’s classification as a security or a commodity. Despite repeated questioning, Gensler was unable to provide a definitive answer, instead stating that the classification depends on the facts of the law.
— Digital Asset Investor (@digitalassetbuy) April 18, 2023
Gary Gensler stammered on McHenry’s question
McHenry continued in his line of questioning, noting that Gensler had already taken 50 enforcement actions, arguing that the lack of clarity surrounding its classification is damaging to the industry as a whole.
Critics have accused Gensler and the SEC of attempting to label all cryptocurrencies as securities without sufficient factual basis. The agency’s actions, along with those of the CFTC, have faced criticism from some who believe that they are seeking to suppress the growth of the cryptocurrency industry.
Coinbase CEO Brian Armstrong also recently voiced his opinion on the lack of regulatory clarity in the cryptocurrency industry in the US. He also stated that the exchange might consider options to relocate from the US if necessary. Additionally, Armstrong also stated that he is willing to fight the SEC in court in case there is no clarity from their end.