The head of the US Securities and Exchange Commission (SEC) Gary Gensler spoke before the House of Representatives, facing harsh criticism from congressmen.
Politicians asked the official about the SEC's policy regarding digital assets and clarified the terms of approval of bitcoin ETFs.
Financial Services Committee Chairman Patrick McHenry began by asking whether Bitcoin is a security. The head of the Commission replied that Bitcoin is not considered as such, as it does not meet the Howey test.
Earlier, Gensler stated that all digital assets, except Bitcoin, can be classified as securities.
McHenry also threatened the official with a summons to court for his "non-transparency" in front of other agencies and alleged connections with the collapsed FTX and its ex-CEO Sam Bankman-Fried.
Republican Tom Emmer criticized Gary Gensler for his "bullying" approach to regulating the cryptocurrency industry. In his opinion, the agency prefers to consolidate power in its hands instead of thinking about ordinary Americans and the future of the country.
Congressman Richie Torres asked Gensler whether the purchase of Pokemon trading cards could be a secured transaction and therefore subject to securities laws. The opponent answered negatively.
Torres then asked how a similar transaction made through the blockchain would be classified. The head of the Commission thought about it and asked for more introductory data.
Members of Congress were also unhappy with the delay in approving the spot bitcoin ETF. On the eve of the hearing, the SEC postponed the adoption of decisions on exchange-traded funds based on Bitcoin and Ethereum.