US House Committee Threatens SEC Subpoena For FTX Documents

McHenry sought documents in Feb and followed up in April and May due to concerns about info adequacy at SEC.
US House Committee Threatens SEC Subpoena for FTX Documents

The US House panel led by Patrick McHenry said Monday it may subpoena the SEC for the documents about former FTX CEO Sam Bankman-Fried. 

He is again requesting documents from the Securities and Exchange Commission (SEC) related to their communications with the Justice Department regarding the arrest of former FTX CEO Sam Bankman-Fried.

McHenry initially requested these documents in February and sent follow-up requests in April and May as questions were raised about the sufficiency of the information provided to the SEC.

McHenry talked about digital assets and oversight at a recent hearing, while Maxine Waters expressed concerns about how a government shutdown could impact the SEC.

McHenry alleged that SEC Chair Gary Gensler had taken steps to stifle the digital asset ecosystem and had been uncooperative in disclosing information to Congress regarding the links between the commission, FTX, and SBF. The committee chair asserted that the government agency had made repeated requests for documents related to the timing of SBF’s arrest, given a previously scheduled appearance before Congress.

“Seven months later, the committee has not received a single non-public document that was not part of a [Freedom of Information Act] production. As I said, our patience is wearing thin […] I do not want to be the first chairman of this committee to issue a subpoena to the Securities and Exchange Commission,” said McHenry.

The SEC is facing a deadline of September 30 without a deal in place on spending, and as Gary Gensler, the head of the agency, said on Monday, that means a large percentage of its workforce would effectively go on furlough.

When McHenry asked Gensler, Gensler said Bitcoin is “not a security” based on criteria in the Howey test because Bitcoin does not meet the definition of an investment contract. This approach aligns with Gensler’s position from his MIT days in 2018.

Also Read: Gensler Urges For Crypto Compliance Before Wednesday Hearing

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