All Five SEC Commissioners Set to Testify Next Week: Will ETH Security Debate Resurface?

Next week, all five SEC Commissioners will reportedly testify before the House Financial Services Committee. This development comes as the SEC Gary Gensler faces a probe over the alleged illegal hiring at the agency. Also with the SEC launching investigations into ETH’s security status last month, market analysts are curious as to whether this debate would resurface again.

All SEC Commissioners to Testify

Fox Business journalist Eleanor Terret was the first to report that the entire SEC commission will testify next week, rather than just the chair. This is the first time in five years since 2019 that all five SEC Commissioners will appear before the House Financial Services Committee. Additionally, SEC Chair Gary Gensler will testify separately next Wednesday.

Reports from the last week suggest that Gary Gensler broke federal law while tampering with hiring practices and factoring political leanings into the recruitment process at the SEC. Lawmakers suspect the agency may be favoring individuals with particular political affiliations, potentially violating the Civil Service Reform Act of 1978. Some reports also suggest that the SEC Chair Gensler can lose his job amid these investigations.

Also, further reports suggest that ex-SEC officials would soon testify against the regulator in the latest hearing over the crypto regulatory oversight. Scheduled to testify are Dan Gallagher, Chief Legal Officer at Robinhood Markets, and Michael Liftik, Partner at Quinn Emanuel Urquhart & Sullivan, LLP. Both have strong connections to the SEC.

Gallagher served as an SEC Commissioner from 2011 to 2015, while Liftik was the Deputy Chief of Staff to former SEC Chair Mary Jo White and also held a staff position at the agency.

Ethereum As a Security Discussion to Continue?

Crypto lawyer MetaLawMan reacted to the upcoming SEC testimony, expressing surprise that all five SEC Commissioners will be present. In a social media post, MetaLawMan speculated whether House Financial Services Committee Chair Patrick McHenry will once again press SEC Chair Gary Gensler on whether Ethereum (ETH) is classified as a security or commodity.

Additionally, as per MetaLawMan, SEC Commissioner Hester Peirce could potentially graduate to serve an unofficial audition for the top role at the US SEC.

Wow—all 5 SEC Commissioners!

What are the odds @PatrickMcHenry will ask Gary—one last time—whether ETH is a security or a commodity? 😂

We can count on @RepRitchie for a few good zingers.

Could be @HesterPeirce’s audition for the top spot if . . . well, you know.

Good work… https://t.co/QmoAXmoeli

— MetaLawMan (@MetaLawMan) September 17, 2024

The Ethereum price has been under the bearish grip and flirting around $2,300 levels recently. Some market analysts believe that the ETH price has bottomed and whale accumulation could lead to further rallies ahead.