Topic: Gary, tell us what is Ethereum? - page 2. (Read 544 times)

I think nothing has damaged the SEC's reputation as badly as this whole crypto-security-or-not situation.
Remember that Gensler is just a face for the SEC, but it's not like he's solely responsible for the lack of clear policies. There's something deeper going on there for sure.
I think they're just trying to assess the implications of deciding either way. But I won't be surprised if they throw Gensler under a bus eventually to try to regain credibility.

Meanwhile, a Coinbase finally lost their patience and decided to sue SEC in hopes to get the court to force SEC to give Coinbase a clear answer to their petition (after being ignored for months).
https://www.cnbc.com/2023/04/24/coinbase-sues-sec-after-months-of-silence-from-federal-regulator.html

He has taught classes about blockchain, digital currencies, and other financial technologies, and won the MIT Sloan Outstanding Teacher Award for the 2018-19 academic year. Gensler first joined the Institute in 2018.

One night a policeman found a man searching for his keys under a streetlight. He joined to help, only to realize after hours of searching, that the man had lost his keys in the park.

“Then why are you searching here?” asked the policeman.

“Because this is where the light is,” replied the man.

McHenry asked Gensler some very specific questions, including this one, regarding Ether (ETH), the native token of the Ethereum blockchain.

“Clearly an asset cannot be both a commodity and a security. Do you agree?”

“Ummm, I… I… it’s… actually all securities are commodities under the Commodity and Exchange Act, it’s that we’re excluded commodities, but I would agree that a security cannot also be an excluded commodity and an included commodity, I’m sorry chair, just to talk about the Commodity Exchange Act, more precisely.”

McHenry did not appear to think this answer was an answer at all.

He followed up: “I’m asking you, sitting in your chair now, to make an assessment under the laws that exist: Is ether a commodity, or a security?”

“Without speaking to any one…” began Gensler.

“You’ve repeatedly said you won’t speak to one,” interrupted McHenry, “But 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,” Gensler replied, “There’s ten to twelve thousand, if there’s a group of entrepreneurs…”

“I’m asking about one,” interjected McHenry. “I’m asking you a specific question, Chair Gensler. I said this in private, this should be no shock to you that I’m asking this question. Is ether a commodity, or a security?”

Gensler: “And again, it depends on the facts and the law on if there’s a group of individuals…”

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

Gensler: “And so, Mr. Chair, I think you would not want me to prejudge…”

McHenry wasn’t having it. “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?”

Once again, Gensler refused to answer. “And my view is, if there’s a group of individuals in the middle of it, the public is entitled…”

McHenry gave up and moved on.