CRAZIEST Crypto Hearing Ever: Gary Gensler’s GRILLING!!

Last week Gary Gensler the chairman of The SEC finally testified to U.S Politicians about The Regulators Crackdown on the crypto industry this Was Gary's first Hearing in front of the House Financial Services Committee in Almost a year and a half Clips from the hearing went viral on Social media but they only scratched the Surface of what Gary said that's why Today I'm going to summarize the full Five-hour hearing explain the Significance of what was said and tell You exactly what it could all mean for The crypto Market buckle up folks this Is not to be missed Okay we've got a lot to get through so Let's get straight to it Gary's hearing Began with opening statements from the Top ranking politicians on the committee The first to speak was Patrick McHenry And he didn't hold back He started by saying that the committee Is Under New Management the Republican Party Patrick went on to grill Gary for daring To ask for more funding when the Regulator refuses to clarify crypto Regulations he went on to highlight the Fact that the SEC has engaged in 50 Enforcement actions against the crypto Industry and that its regulation by Enforcement must stop The second to speak was Maxine Waters

She slammed the Republican politicians Present for targeting Gary and the SEC For political reasons she applauded Gary For going after crypto criminals but Spent most of her time insisting that The sec's proposed climate disclosure is Legitimate and necessary if you watched Our summary of Gary's testimony to the Senate Banking Committee last year you Might recall that these rules have been A cause for concern on both sides of the Aisle that's because they could have the Practical effect of bankrupting many Small and medium-sized businesses with Compliance costs now the third to speak Was Anne Wagner who started by accusing Gary of not following the Mandate that Congress gave the SEC for context the Sec's Mandate is to quote protect Investors maintain Fair orderly and Efficient markets and facilitate Capital Formation Anne said Gary has done the Opposite now this was in stark contrast To the fourth politician to speak Brad Sherman he thanked Gary for cracking Down on crypto he thanked Gary for Fighting the crypto Bros and he thanked Gary for pushing those climate Disclosure rules note that Brad thinks Crypto is only used by criminals and North Koreans Next it was Gary's turn to speak he Spent most of his time talking about the History of Securities regulation in the

United States Now for reference the SEC considers an Asset to be a security if there's an Identifiable third party that's creating The expectation of profit you have when Investing a stock in a company is a good Example Gary then claimed that AI is the most Important technology not cryptocurrency He added that the crypto industry needs To come into compliance with existing Securities laws now for those unfamiliar Securities laws are almost 100 years old And are arguably not appropriate to use For cryptocurrency Gary then touched on the risks posed by Climate change and the importance of Cyber security he criticized stock BuyBacks and insisted that the SEC is Making markets efficient and fair he Spent lots of time talking about his dad For some reason and concluded by saying That markets need to serve investors not The other way around once Gary was done The question period began and Patrick Was the first to go now this exchange Went viral because it was about whether Ether is a security or not Patrick began by asking whether it's Possible for eth to be a security and a Commodity like oil at the same time Gary Said no Patrick then asked Gary Point Blank whether eth was a security or a Commodity Gary said he couldn't speak to

Any specific crypto Patrick said he's Spoken about BTC so surely he could Speak about Heath What followed was multiple minutes of Patrick trying to pry an answer out of Gary he didn't succeed Patrick took this As an opportunity to underscore the Regulatory uncertainty being created by Gary's refusal to provide an answer Gary Insisted that Securities laws make it Clear as to what eth status is as an Asset Patrick vocally disagreed note That Gary has implied eth is a security Before Now Maxine was the second to ask Questions and she asked Gary a good one Can you explain the difference between a Commodity and a security Gary started by Citing the Howie test which I explained Earlier expectation of profit Then he said two things you need to take Note of First Gary specified that an asset is a Security if there is a group of Entrepreneurs in the middle who are Promoting the project second Gary Specified that an asset is a security if There is an entity that is sending Lawyers or lobbyists to discuss Regulations with politicians and Regulators like the SEC now the first Point is important because it confirms That Gary doesn't care if there are Multiple third parties driving

Expectations of profit if they can be Identified that crypto is a security The second point is important because Lots of crypto projects have lobbied These projects are all potential SEC Targets therefore anyways french hill Was the third to ask questions and he Asked whether Gary supports stablecoin Specific crypto regulations Gary said Yes but only for payment stable coins he Said some stable coins are securities And subject to SEC oversight he said one Of them had three billion dollars in Silicon Valley bank now if you watched Our video about usdc's deepeg you'll Know that circle is the stablecoin Issuer Gary referred to newsflash Gary Implied that usdc is a security this is Significant because Circle has been Arguing that usdc is a payment stable Coin which should be subject to Fed Oversight Gary disagrees FYI any crypto That's labeled a security by the SEC Basically gets wrecked as we've seen With xrp it immediately gets delisted From all U.S crypto exchanges and is put Out Of Reach of retail and investors Take a second to consider just how much Damage it would do if say Circle was Ordered to stop issuing usdc Next after a few irrelevant questions From Nadia Velasquez Pete Sessions asked Gary why he said that all of the views Expressed are his own at the beginning

Of his testimony Gary said its standard SEC procedure Pete said that it's Ridiculous and needs to be changed Because Gary clearly speaks for the SEC Agreed Brad Sherman was the sixth to ask Questions and you'll recall he's Especially anti-crypto he repeated that He was pleased with Gary's performance He asked Gary if he stands by his Comments that imply crypto exchanges Haven't complied with the SEC Gary said Yes and Brad said to shut them all down Well I reckon Gary's already working on That anyhow after a few more irrelevant Questions from Frank Lucas who seems to Be friends with Gary Stephen Lynch asked Gary how many cases the SEC has won Against crypto companies and projects Gary said that the SEC has been quote Very successful that is an Understatement they've won every case so Far Stephen also asked Gary whether the Rulings in these cases have provided Clarity around the sec's reasoning Gary Said yes but I disagree as someone who's Gone through the sec's reasoning in These cases I can tell you that it is Inconsistent and unreasonable more about That in the description Now Bill Posey was the ninth to ask Questions and he asked Gary whether he Had any concerns prior to the collapse

Of FTX and Gary basically said no He also asked Gary when the SEC became Aware of Securities issues at FTX Gary Said last December well I doubt that Given that Gary had met with SPF Multiple times never mind that FTX had Already been gone for one month by that Point After yet another round of irrelevant Questions this time from Blaine Luitkamaya Jim Himes asked Gary about The public vs private markets he said he Was concerned that private markets were Growing and Retail investors were being Left out Gary spent his time defending Public markets really said a Lot bill Huizenga was the 12th to ask questions He focused on the sec's climate Disclosure rules and asked Gary why the SEC was only sending the committee Pointless publicly available documents When they asked for more information About the rule Bill revealed that the SEC was doing the same for FTX not Surprisingly Gary danced around these Questions Joyce Beatty was the 13th to ask Questions and she asked Gary how the Sec's climate disclosure rules would Affect small and medium-sized businesses Gary said the rule only applies to Public companies what he didn't say is That these companies must collect data From other businesses they work with

Joyce then gave Gary the opportunity to Speak about whatever he wanted for her Last 40 seconds and it scares me that This was missed by the crypto media Gary Switched topics and said that all the Banks which collapsed had been working With crypto and their collapse caused Usdc to lose its dollar Peg if that Doesn't say the SEC really wants to Crack down on stable coins well I don't Know what does After additional roasting from Anne Wagner Sean Caston asked Gary whether The sec's climate disclosure rules pose A risk to publicly traded companies Gary Dodged the question and simply said that This is what investors are asking for This is a subtle reference to the likes Of BlackRock and Bank of America on that Note Sean said he was happy that the SEC Was pushing ESG policies and went as far As to argue that real estate is Overpriced because it's not considering All the climate change effects well tell That to the corporate and political Elites that continue to purchase massive Properties on coastlines and beaches Now Andy Barr was the 16th to ask Questions and he asked Gary about the Crypto custody rule put out by the SEC Which effectively bans Banks from being Crypto custodians Gary said he was proud Of the sec's rule and revealed that it Had been put together with the help of

The big four accounting firms Now this comment is extremely Significant because the big four Accounting firms have also been heavily Involved in standardizing ESG criteria This begs the question of whether the Whole ESG crowd has turned against the Crypto industry I honestly don't know The answer but well we'll find out soon Enough after some more irrelevant Questions from Ayanna Presley and more Criticism of the sec's climate Disclosure rule from Roger Williams Bill Foster asked Gary about whether the SEC Can know the identity of everyone using Crypto Gary said they will once Cryptocurrency exchanges come into Compliance yikes Tom Emma was the 20th to ask questions And he gave Gary a long list of yes or No questions the tldr is that Tom blamed Gary and the SEC for debanking the Crypto industry blamed them for sleeping On terror and FTX and for pushing the Crypto industry into the arms of the Chinese Communist Party Gary had no Answers or retorts lovely stuff Josh Gottheimer was the 21st to ask questions And he expressed concerns about all the Rules the SEC was proposing and the Impacts they could have on the market All Gary said was that he's proud of What the SEC has done and will continue To meet with investors AKA BlackRock and

Co about future rules Josh also argued that the sec's Regulation by enforcement of the crypto Industry is creating more risks not Protecting investors he asked Gary Whether the SEC will start to provide Regulatory Clarity to the crypto Industry and Gary said that the SEC has Already been doing that and here's me Thinking he was under oath Barry Loudermilk was the next and he Spent the entire time destroying Gary Notably he said that the rules the SEC Is proposing require Congressional Approval and that the disclosures the SEC wants from institutions require a Warrant under normal circumstances Gregory Meeks was the 23rd to ask Questions and he asked why the SEC is Pushing crypto companies out of the Country Gary said that if they complied Then they wouldn't have to leave he Didn't say that the sec's crypto Guidance is so vague that coinbase is Literally suing them to get some clarity Then after some cutting questions from Alex Moody Richie Torres asked Gary About FTX he started by saying that FTX Was based offshore because of the sec's Bad crypto regulations He asked Gary if the SEC can Target Crypto companies that are offshore Gary Said yes but admitted that it can be Very difficult

Warren Davidson was the 26th to ask Questions and his exchange with Gary Also went viral that's because Warren Asked Gary if he had coordinated with Elizabeth Warren or the Democratic party Prior to his testimony Gary danced Around the question and said he receives Support from SEC staff that is very Concerning Warren went on to ask how It's possible that public and Pension Funds can invest in coinbase stock when The SEC claims that the exchange is Violating Securities laws Gary again Failed to give an answer Warren wrapped Things up by saying he wished he could Squeeze Gary on ESG well that makes two Of us after a healthy serving of Irrelevant questions from Sylvia Garcia John Rose asked Gary how it's possible That it took him over a year to testify No clear answer So he asked Gary whether he had seen any Of the letters the committee had sent Asking him for information Gary said Thanks for reminding me I'll check later Excuse my language here but After a worrisome Announcement by Wiley Nickel about a bipartisan Bill to Digitize all documents Brian stale went For the jugular he revealed that Gary Had gotten in trouble for using his Personal emails for work matters at the Cftc and asked if Gary was doing the Same at the SEC Gary said no obviously

Brian then asked Gary if he or anyone Else involved in cracking down on crypto At the SEC had used or invested in Crypto before now this exchange likewise Went viral because Gary admitted that he Hadn't ever used or invested in crypto He just said that he taught a course About crypto at MIT it's on YouTube FYI I have to question the wisdom of someone Teaching a course on blockchain at one Of the nation's Premier universities Without ever touching crypto but be that As it may Brian also said something Interesting and that's that ESG Disclosure rules will discourage private Companies from going public remember That Gary seems to be a big fan of Private markets I wonder if that's Precisely because retail investors Aren't involved can't short squeeze a Hedge fund for example Conspiracy theories aside Brittany Peterson was the 31st to ask questions But well I think I'm losing count at This stage in all seriousness she asked Gary about Ai and what politicians Should keep in mind when drafting AI Regulations all Gary said was that the SEC is focused on the role of AI in Investing and Advising hmm The questions from William Timmons were Similarly interesting he revealed that One of the sec's rules essentially Legalizes institutional investors

Front-running retail investors he also Revealed the Biden administration had Hired a top Economist who was against The USD as the world's Reserve currency Naturally William asked Gary whether the Purpose of the sec's agenda is to Partake in the dethroning of the US Dollar Gary seemed to deny this and Seemed to support the USD status as Reserve currency I for one don't see the Connection but Gary's lackluster reply Could be evidence for William's Theory Speaking of which you can find out how Countries are getting away from the Dollar using the link in the description I digress then after more concerns about The sec's climate disclosure rule from Stephen hawsford Dan moiser turned the Intensity up to 11. he pointed out that Gary was the Chief Financial Officer of Hillary Clinton's 2016 presidential Campaign He noted that Gary's role was to Bankroll attacks on Republican opponents He also argued that Gary's political Bias has continued because the SEC has Allegedly been blocking or ignoring Applications and inquiries by Republican Companies and politicians He asked Gary how we can know that the SEC is being objective Gary just said That investors benefit when companies Comply that gives a whole new meaning to The word yikes

Now Rashida Talib was the 34th Politician to ask questions and she Asked Gary to explain the scope 3 Emissions portion of the climate Disclosure rule Gary explained that Scope 3 emissions require companies to Collect emissions data from their Suppliers and their consumers hence the Opposition Rashida also asked Gary about the eu's Own climate disclosure rules which we Covered in another video Gary noted that Around 70 percent of American companies Would be affected by the EU rules and Seemed happy about that If you're an American business owner or Know someone who is watch that video Then after a whole load of nothing from Scott Fitzgerald Juan Vargas asked Gary To elaborate on his views about AI given That he'd noted in his opening statement That he saw it as being more important Than crypto Gary said that AI will be Revolutionary like the internet which is What's often said about crypto One admitted that AI makes him nervous And he asked Gary if he's concerned After a bit of rambling Gary revealed Something so insane that I refuse to Believe it He seemed to imply that AI is being used To analyze social media activity to Determine how credit worthy you are how Easily you can get a loan in other words

Yikes times 10. after another nothing Burger from Young Kim great name Al Green used his time to talk about how The US dollar is losing its status as The world's Reserve currency Specifically he said there's an ongoing War for currency Supremacy and although The USD may be winning today it may not Win tomorrow Now Mike flood was the 38th I think to Ask questions he asked Gary why he Hadn't answered his letter asking about Those crypto custody rules for banks Gary said he forgot Mike followed up by asking why these Crypto custody rules are required Gary Said Banks holding crypto is a threat to Financial stability Mike Lawler was the 39th to ask Questions after pressing Gary about the Sec's climate disclosure rules he asked Whether the SEC is in any way Responsible for ftx's collapse Gary Dodged the question and said the SEC Will crack down extra hard on the crypto Industry almost as if that was the plan All along After more concerns about the sec's Rules from Zach Nunn Monica De La Cruz Asked Gary if the SEC should be Prioritizing ESG Gary claimed that the SEC is neutral on the SG Monica pointed Out that the SEC only consulted with 15 000 institutional investors about ESG

And this is not representative of America by the way you should know that ESG has its roots in the un's Sustainable development goals which also Happen to be the origin of things like Digital ID cbdcs and smart cities more About that in the description moving on Erin Houchin was the next to ask Questions and she asked Gary about his Inconsistencies around which cryptos are Securities Gary claimed that he's not Been inconsistent and claimed that this Inconsistency was only due to media Coverage he went on to plainly explain His Securities criteria if there is a Group of entrepreneurs or developers who Are Central to a crypto project if they Operate websites Twitter accounts and Blogs where they provide updates that Provide expectations of profit then the Associated coin or token is a security And it must therefore register with the SEC or else in other words every Cryptocurrency but BTC is the security In the eyes of the SEC Some would argue that even BTC meets Gary's criteria regardless these Criteria are still not clear and that's Something Aaron pointed out as well all Gary could say was that crypto companies Need to comply as always then the next Politician to ask questions was Andy Ogles he revealed that the SEC has Undisclosed documents related to the

Charges that SBF is facing and he asked Gary where those documents are Gary said That the SEC is not permitted to provide Documents related to ongoing Investigations Sure Now the last politician to ask questions Was Byron Donalds he asked Gary whether The SEC has the authority to request Climate-related information from Companies Gary said that the Securities Laws written in the 1930s give the SEC The authority to do this Byron said the law was never written With that intention he also reiterated That the SEC hasn't provided any Regulatory Clarity for the crypto Industry Gary pushed back by saying that It has Byron then asked whether the SEC has the Manpower to regulate the crypto industry And Gary said yes this ain't good Because it means they will continue to Crack down Byron finished off by asking Gary Whether he had approved the funding of a Now debunked document which claimed that The Trump campaign had close ties to Russia and resulted in years of Investigation Byron reminded Gary that He was under oath Gary said this was not Something he was aware of So this brings me to the big question And that's what all this means for the

Crypto Market well as satisfying as it Was to see Gary getting interrogated by Pro-crypto politicians the fact of the Matter is that Gary and the SEC are Still intent on cracking down on the Crypto industry never mind all the other ESG and AI stuff now I've said it before And I'll say it again I think we're on The cusp of a Crackdown on a major Exchange or stablecoin issuer Coinbase and paxos were both served Wells notices over 30 days ago which Means the SEC could strike at any time But will it Well besides the fact that lawsuits Against these large entities are likely To be very expensive and very lengthy There's no guarantee that the SEC will Win word on the street is that Gary's End game is to replace Janet Yellen as Treasury secretary if he takes on losing Battles it lowers his likelihood of Securing that seat at the same time Gary Can't be seen by his political and Regulatory allies as being too soft on The industry so far he's managed to Appease them by cracking down on random Crypto projects and exchanges that few Have heard of with the exception of Ripple obviously but it's clear that They're getting impatient they want more This is ultimately because these Politicians mostly Democrats appear to Be backed by the mega Banks which don't

Want any competition from the crypto Industry similarly it appears that most Republicans are being backed by fintech Companies including the crypto industry It's tradfy versus fintech and defy That said it's not that clear-cut there Seems to be lots of overlap between These two warring factions after all Asset managers like BlackRock and mega Banks like Bank of America want to make Money off crypto as much as anyone else But they also want to be a part of the Elites ESG aligned cbdc system once you Understand that both political parties Have been bought off by similar entities It becomes a bit easier to appreciate What's going on with crypto regulation In short the real powers that be are Trying to figure out how to square the Circle how to control crypto and keep The cbdcs if I'm correct then stable Coins are probably incompatible with Their Vision that's because stable coins Would cut commercial Banks out of the Cbdc equation stable coins are also Required for most defy to function and D5 protocols would likewise cut other Financial intermediaries out of the Equation That's why I suspect that when the dust Settles in the U.S we're going to see Crypto regulations that are similar to What's being proposed in Hong Kong Crypto investing and trading are

Completely legal but only for the Largest cryptocurrencies everything else In crypto will be banned including Financial privacy thankfully there are Other countries that are taking a Different approach to crypto regulation And you can find out why they'll be the Drivers of the next crypto Bull Run Using the link in the description And that's all for today's video If you Enjoyed it smash that like button to let Me know and be sure to subscribe to the Channel and ping that notification Bell Before you go if you know of any other Crypto Pros that should know about Gary Ganzo's Mo be sure to share this video With them Pronto and if you happen to be Looking for a safe place to keep your Crypto or make more money when trading Check out the coin Bureau deals page It's got huge discounts on Hardware Wallets and thousands of dollars of Trading incentives on the top crypto Exchanges the deals page is down below As always thank you all so much for Watching and I'll see you next time Thank you