Gensler Gets Grilled (Again)

Not to sound like a broken record, but the US continues to push off an approval of a spot bitcoin ETF.

Over the past several months, funds have been scrambling to apply, hoping to be the first to approval and win the crown.

But, like clockwork, SEC Chair Gary Gensler continues to reject and/or delay all applications. This approach has left many investors, including ourselves, in a state of perplexity, frustration, and resentment.

In relatively good news, however, it now seems like Congress shares the same sentiment.

Just yesterday, a bipartisan group of lawmakers comprising of Mike Flood (R-Neb), Tom Emmer (R-Minn), Ritchie Torres (D-NY), and Wiley Nickel (D-NC), penned a letter to Gensler calling for an "immediate" approval of the listings.

The lawmakers pointedly conveyed to Gensler that there was “no reason to continue to deny” spot crypto ETF applications following the Grayscale court decision. From there, they made a case that a regulated spot bitcoin ETF would amplify investor safeguards by offering more transparent and secure avenues to access bitcoin.

So, to sum it up, the pressure is on… but the letter was probably the least of Gensler’s worries this week.

Today’s Hearing

In related news, Sir Gensler headed over to the Capitol today to testify before the House Financial Services Committee where he got absolutely grilled on his bullying tactics and lack of regulatory clarity.

To up the ante, 40+ crypto founders are in DC this week as well to talk with Congress about the outrageous overreach of the SEC and the need for common sense crypto legislation.

Here were the highlights from the hearing:

• Gensler said that bitcoin is NOT a security, but he refuses to say that it’s a commodity.

• Tom Emmer brought the heat, as always. Here’s the clip.

• Andy Barr compared Gensler to Tanya Harding because he's “knee-capping capital markets”.

• Someone photobombed Gensler while speaking, with the Coinbase "Stand with Crypto" shield 🛡️.

• Warren Davidson said he wishes the Biden Administration would fire Gensler.

• But, perhaps most importantly, Congressman Patrick McHenry issued a warning to Gensler, suggesting that he could be the first SEC chair to receive a congressional subpoena. Why? Because of his "reckless approach to rulemaking," and his lack of transparency about his dealings with FTX and SBF.

For the record, today’s hearing was another case of the Great American Musical, where politicians act like they’re on Broadway and say harsh things to gain recognition, clicks, and so forth. In other words, despite all the “warnings” and “threats” to Gensler, these hearings, unfortunately, don’t hold much weight.

However, when considered alongside yesterday’s letter, a pattern is emerging: Support for Gensler within Congressional ranks is drastically waning.