Rep. Patrick McHenry, the chair of the United States House Financial Services Committee, hinted at the possibility of issuing a subpoena to the Securities and Exchange Commission (SEC) in an ongoing effort to obtain documents concerning former FTX CEO Sam Bankman-Fried (SBF). During a hearing on September 27, McHenry criticized SEC Chair Gary Gensler for a lack of transparency and suggested that the SEC was undermining the digital asset ecosystem.
The committee had initially requested documents related to communications between the SEC and the Justice Department regarding the charges against Bankman-Fried back in February. McHenry reiterated this request in April and May when he claimed that the SEC had only provided publicly available information.
In the hearing, McHenry expressed frustration, stating, “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.”
McHenry’s concerns center on the timing of SBF’s arrest, which coincided with a previously scheduled appearance before Congress. He accused the SEC of withholding crucial information on this matter.
While McHenry’s opening statement at the hearing focused on digital assets and oversight, ranking member Maxine Waters raised concerns about the potential impact of a U.S. government shutdown on the SEC’s operations. Gensler warned that if lawmakers failed to agree on government spending by September 30, approximately 92-93% of SEC staff could be furloughed, potentially affecting the agency’s ability to regulate the financial markets effectively.
In response to McHenry’s questions, Gensler clarified the SEC’s stance on Bitcoin, affirming that it is not considered a security. He noted that Bitcoin does not meet the criteria outlined in the Howey test for what qualifies as an investment contract. This position aligns with Gensler’s previous statements during his tenure as a professor at the Massachusetts Institute of Technology in 2018.
