Gary Gensler's inability to answer if ETH is a commodity or security, video

The House Committee Chairman McHenry got the chance to grill Gensler about ETH and whether it was a commodity or security. Needless to say it did not go well for Gary. Not only did he not give any straight yes or no answers but he tried to filibuster his way out of the question.

The House Committee Chair repeatedly asked particularly about ETH given the 50 enforcement actions, to which Gensler tried to give a generic response: “it depends on the facts of the law.”

Best part:

McHenry - I'm asking you sitting in your chair right now to make an assessment under the laws that exist is Ether a commodity or security. I'm asking you a specific question: is Ether a commodity or security

Gensler : You don't want me to pre judge...

McHenry (cuts Gensler off): But you have pre judge on this, you've taken wells notices out on numerous company's, 50 enforcement actions, we're finding out as we go as you file suit. I'm asking your view on the 2nd largest cryptocurrency. What is your view?

Gensler: in my view is, if there is a group of individuals ... (more trying to filibuster)

McHenry: Cuts him off (disgusted by his inability to answer)

Links:

To the interview

Financial service committee notes

​

Edit:

Full transcript of the conversation taken from this article: House committee chair blasts SEC's Gensler on defining Ether

“Back in 2018,” said the chair of the House Financial Services Committee, at a Tuesday hearing, “then-SEC Corporation Finance Director Bill Hinman stated that he believed Ether was not a security. Last month, CFTC Chair [Rostin] Benham expressed his view that Ether is a commodity. The state attorney general of New York asserted in a court filing last month that Ether is a security. Clearly, an asset cannot be both a commodity and security. Do you agree?”

Gary Gensler, chair of the Securities and Exchange Commission, smirked.

“Actually,” he responded, “all securities are commodities under the Commodity Exchange Act. It’s that we are excluded commodities. But I would agree that a security cannot be also an excluded commodity and an included commodity.”

McHenry, an advocate of establishing rules for stablecoins, pushed onward.

“OK. How would you categorize Ether then?”

“I think,” continued Gensler, “that the general sweep of what Congress did, not just in the ’30s but as—”

“I’m asking you, sitting in your chair now, to make an assessment under the laws as [they] exist: Is Ether a commodity or a security?”

“Without speaking to any one—”

“I know, you’ve repeatedly said you’re not going to speak to one, except you’ve spoken to one: Bitcoin. So I’m asking you to speak to a second one, [with] the second-largest market cap.”

“In speaking to the tokens,” replied Gensler, “there’s 10 to 12,000. If there’s a group of entrepreneurs—”

“I’m asking you about one.”

“I’m asking you a specific question, Chair Gensler. I said this in private. This should be no shock to you I’m asking this question: Is Ether a commodity or a security?”

Another non-answer from Gensler that includes “the facts and the law” gets interrupted.

“I’m asking you about ‘the facts and the law,’ sitting in your seat, and the judgement you are making.”

“Mr. Chair,” Gensler answered, “I think you would not want me to prejudge—”

“But you have prejudged on this. You’ve taken 50 enforcement actions. We’re finding out as we go, as you file suit, as people get Wells Notices on what is a security in your view and your agency’s view. I’m asking you a very simple question about the second-largest digital asset. What is your view?”

Another non-answer. Another interruption by a frustrated McHenry.

“All right. So let me just ask a second question: Do you think it serves the market for an object to be viewed by the commodities regulator as a commodity and the securities regulator to be viewed as a security? Do you think that provides safety and soundness for the products? Do you think that provides consumer protection? Do you think it serves the value of innovation? I think ‘no’ should be a very simple answer for you here. That uncertainty is bad, is it not?”

“And I think,” Gensler responded, “Congress has said that there’s one agency—the Securities and Exchange Commission—under this committee—”

“And you won’t answer my question, and you’re the head of that agency. So give me a break. Come on.”

​

2nd edit:

And if you think this was all just a set up dog and pony show:

​

https://preview.redd.it/hcfqltij9pua1.png?1232&format=png&auto=webp&s=37c50b577758a8c8a3ad51b2eee258b9e38b5a1d

​

​