SEC Chair Discusses Crypto Industry and Bitcoin ETFs in Congressional Hearing

In a recent congressional hearing, SEC Chair Gary Gensler continued his critical stance on the crypto industry while avoiding direct answers regarding bitcoin ETFs. Gensler expressed concerns about the way digital asset companies handle customer funds, highlighting the dangers of commingling assets.

During his testimony before the House Financial Services Committee, Gensler emphasized the risks associated with mixing assets and stated that such practices have not yielded positive outcomes. He also addressed the SEC’s response to a judge’s ruling that required the agency to reevaluate its stance on spot bitcoin exchange-traded funds (ETFs).

Gensler acknowledged that the SEC is actively considering its response to the court’s decision but did not provide specific details about the agency’s next steps or timeline. The hearing also touched on non-crypto issues, including the possibility of a government shutdown and concerns about the SEC’s focus on climate-related matters.

Despite partisan divisions within the committee, Gensler confirmed that bitcoin is not considered a security. Additionally, he mentioned that the SEC is preparing for a potential government shutdown, which could significantly impact the agency’s operations, causing delays in reviewing and approving SEC filings.

Gensler declined to comment on ongoing legal matters, such as the SEC’s case against Ripple. He emphasized the need for congressional action to address conflicts and commingled assets within the crypto industry.