Rep. McHenry Considers SEC Subpoena Over Issues Linked to ex-FTX CEO Bankman-Fried
Summary:
Rep. Patrick McHenry, head of the U.S House Financial Services Committee, may subpoena the Securities and Exchange Commission (SEC) for documents related to Sam Bankman-Fried, former FTX CEO. This follows the SEC's alleged efforts to stifle the digital asset sector and lack of transparency with Congress. McHenry noted that despite several requests for information on Bankman-Fried's judicial issues, the panel has only received public documents. He also voiced concerns over the potential impact of a government shutdown on the SEC's operations. Lastly, SEC Chair, Gary Gensler, confirmed that Bitcoin is not considered a security.
The leader of the U.S House Financial Services Committee, Representative Patrick McHenry, has hinted at possibly issuing a subpoena for the Securities and Exchange Commission (SEC) in order to obtain documents related to Sam Bankman-Fried, former CEO of FTX. In a hearing about the commission's oversight held on September 27, McHenry accused SEC chair Gary Gensler of attempting to stifle the digital asset sector as well as being uncooperative with Congress regarding the relationship between FTX, the SEC, and Bankman-Fried. McHenry voiced frustration over the government body failing to provide documents in relation to when Bankman-Fried was arrested, despite multiple formal requests, prior to his due court appearance.
McHenry expressed disappointment that after seven months, the committee had yet to receive any private documents that hadn't been part of a FOIA yield, his patience was running low. The committee head expressed reluctance at being the first to call for a subpoena against the SEC.
Earlier in the year, in February, when McHenry was leading the committee, he asked the SEC to provide records of conversations between its staff and the Justice Department regarding the charges brought against Bankman-Fried. Under his leadership, the request was renewed in April and May following accusations of the SEC supplying only publicly accessible information.
McHenry's opening speech during the hearing was centered around digital assets and oversight. However, senior member Maxine Waters spoke about her worry over how a presumed government shutdown in the U.S might impact the SEC's functionality. Gensler responded that if U.S lawmakers failed to reach a consensus on government expenditure by September 30, nearly 93% of SEC staff would be asked to take unpaid leave.
Questioned by McHenry, Gensler confirmed that Bitcoin was not considered a security as it did not pass the Howie test to qualify as an investment contract. This statement echoed his earlier views on Bitcoin during his tenure as a professor at the Massachusetts Institute of Technology in 2018.
Published At
9/27/2023 3:56:00 PM
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