Patrick McHenry, Chair of the House Financial Services Committee, has criticized SEC Chair Gary Gensler for allegedly misleading Congress on the classification of Ethereum (ETH) as a security. This comes after unredacted court documents from Consensys Software’s case against the SEC revealed that Gensler and the agency believed ETH to be a security for over a year. McHenry claims that Gensler intentionally misrepresented the SEC’s position and contradicted previous statements. The SEC has faced criticism for its regulatory approach to crypto, and Consensys has filed its own litigation citing regulatory overreach. McHenry supports the Financial Innovation for Technology for the 21st Century Act (FIT21), which aims to establish a regulatory framework for the crypto industry and potentially prevent further SEC enforcement actions.
