What Sparked McHenry’s Interest?
So, what’s the story behind Rep. Patrick McHenry’s intense scrutiny of the SEC? It seems that the House Financial Services Committee chair has had enough of what he calls the SEC’s lack of transparency regarding former FTX CEO Sam Bankman-Fried, or SBF. And during a recent hearing, he voiced his frustrations loud and clear!
The Accusations Against the SEC
During the Sept. 27 hearing, McHenry accused SEC Chair Gary Gensler of “choking off the digital asset ecosystem”—a statement that sounds more like a wrestling insult than a financial critique. According to McHenry, the SEC has played hard to get with documents surrounding SBF’s arrest, which was supposed to be a cozy chat with Congress back in the day.
The Waiting Game
McHenry bluntly stated, “Seven months later, the committee has not received a single non-public document that was not part of a Freedom of Information Act production.” That’s the bureaucratic equivalent of ordering a pizza and getting nothing but a box. His patience? Wearing thin.
A Request Turned Frustration
It all began in February when McHenry’s committee asked for documents relating to communications between the SEC staff and the Justice Department regarding charges filed against Bankman-Fried. But as the months rolled on, all they reportedly got was a lot of public information—definitely not what they were looking for!
Government Shutdown Concerns
While McHenry was focused on SBF and the SEC, ranking member Maxine Waters had her own worries. She raised flags about the impact of a potential government shutdown on the SEC’s operations. You know things are serious when the SEC Chair, Gensler, mentions that 92-93% of their staff would face furloughs if the government can’t get its act together by Sept. 30.
Bitcoin’s Status
In a surprising turn of events, McHenry confronted Gensler about Bitcoin (BTC), asking if it falls under the definition of a security. Gensler responded with a resounding “No,” stating that it didn’t meet the Howie test. Seems like the SEC Chair’s views on Bitcoin haven’t changed since he was at MIT, proving that some things in the world of finance stay consistently confusing!
What’s Next?
As the clock ticks, McHenry may take the dramatic step of issuing a subpoena—something he’s keen to avoid. But if the SEC continues to play hard to get, who knows? It might just take a little legal drama to get that juicy information on FTX and SBF!
