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GARY GENSLER GETS DESTROYED Sept 2023 Congress Hearing

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Gary Gensler’s Congressional Hearing: Dodging Yes or No Answers


Gary Gensler’s recent Congressional hearing emphasized the importance of providing yes or no answers to simple questions. However, Gensler seemed to avoid committing and obfuscated in his responses. This article explores the implications of Gensler’s actions and the need for better protection and regulation for American investors in the crypto space.

Prioritizing Power over Opportunities for American Investors

During the hearing, Gensler’s actions raised concerns about prioritizing his own power over creating opportunities for everyday Americans. This behavior is worrying, considering the increasing number of crypto scams that have hurt American investors. It is crucial to focus on protecting investors and implementing effective regulations.

Ensuring Transparency and Responsiveness

One of the key issues addressed during the hearing was the lack of transparency and responsiveness to Congress regarding Gensler’s interactions with FTX and Sandbank. Congress has raised concerns about a reckless approach to rulemaking and the absence of a clear capital formation agenda. The SEC should prioritize transparency and accountability to regain trust in the digital asset ecosystem.

Addressing Delayed Document Submission

Another significant issue discussed during the hearing was the delay in providing requested documents to the committee. The requested documents were not submitted for over seven months, raising doubts about the SEC’s commitment to cooperation and transparency. This delay undermines the purpose of the hearing and hampers effective decision-making.

The Status of Bitcoin: Commodity or Security?

Gensler acknowledged that Bitcoin should be considered a commodity and not a security. The SEC staff agrees that Bitcoin does not meet the Howie test for being classified as a security. After a 10-week review process, the documents supporting Bitcoin’s status as a commodity are ready to be transmitted, providing clarity to the market.

Cracking Down on Crypto Firms’ Non-compliance and Fraud

The hearing also shed light on the failures and fraud of various crypto firms, including the recent Terra Luna case, which resulted in losses surpassing $60 billion. While the SEC has taken actions to shut down such firms and recover funds for investors, the penalties paid by defendants in settled cases remain unclear. Stricter regulation is necessary to prevent further investor losses.

Investment Contracts and Federal Securities Law

Defining what constitutes an investment contract is a core issue that determines the extent of authority and applicability of federal securities law to crypto transactions. The Supreme Court has established a four-part test for identifying investment contracts. Additionally, tokenization can transform a non-security transaction into a security transaction based on the context. Clarity in defining investment contracts is crucial for the crypto industry and investor protection.

Proposed SEC Stabilization Act

The SEC stabilization act, if implemented, would remove the role of chairman and introduce a sixth commissioner while preserving the current Commissioners. This act aims to hold the SEC accountable for its actions by ensuring that no more than three commissioners are affiliated with any one political party. The proposed act is a step towards maintaining transparency and effectiveness within the SEC.

Ensuring CFO Accountability

The hearing also touched upon the importance of holding Chief Financial Officers (CFOs) accountable. Witnesses provided contrasting testimonies regarding the involvement of the CFO in the Hillary Clinton campaign payments. Regardless, CFOs in both the public and private sectors should be held to a standard that requires accurate reporting of financials in accordance with Generally Accepted Accounting Principles (GAAP).


Gary Gensler’s Congressional hearing exposed his tendency to dodge yes or no answers and prioritize power over opportunities for American investors. The concerns raised regarding transparency, delayed document submission, and the status of Bitcoin highlight the need for better protection and regulation in the crypto space. Additionally, the hearing emphasized the significance of defining investment contracts and holding CFOs accountable. The proposed SEC Stabilization Act aims to bring more accountability to the SEC. It is crucial for regulators to prioritize the interests and safety of American investors in the rapidly evolving world of cryptocurrency.

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