REGULATION

The U.S. House Financial Services Committee wrote to SEC Chairman Gary Gensler, requesting the disclosure of the investigation process into SBF.

share
The U.S. House Financial Services Committee wrote to SEC Chairman Gary Gensler, requesting the disclosure of the investigation process into SBF.

The Chairman of the House Financial Services Committee, Patrick McHenry, and the Chairman of the Subcommittee on Oversight and Investigations under the Financial Services Committee, Representative Bill Huizenga, have written to the Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, requesting the production of communication records related to the founder of the bankrupt exchange FTX, SBF.

Table of Contents

The document indicates that SBF was scheduled to attend a hearing in the House of Representatives on 12/13, but was arrested by the Bahamian authorities the night before, as SBF had anticipated a request for extradition from the United States.

The Bahamian authorities stated that they only arrested SBF upon receiving notification from the United States.

Subsequently, the US Southern District of New York prosecutors confirmed criminal charges against SBF, and the SEC also filed a civil lawsuit against SBF.

The Financial Services Committee believes that there are serious concerns regarding the timing of SBF's arrest, the SEC's investigative process, and the cooperation with the Department of Justice. The American public has the right to understand the enforcement transparency of the SEC and its chairman Gary Gensler. The Financial Services Committee requests Gensler to provide all relevant dialogue records related to SBF between November 2, 2022, and February 9, 2023:

  1. Between SEC Enforcement Division Director Gurbir S. Grewal and Enforcement Division staff.

  2. Between Gary Gensler and any staff.

  3. Among all employees of the SEC and the Department of Justice.

The Financial Services Committee requires Gensler to provide the relevant documents by February 24.

Congressman Bill Huizenga tweeted that Gensler did not follow his so-called crypto guidance policy of "come in and talk," which is to provide space for crypto industry players to discuss policies and guidance. Therefore, the House of Representatives will hold him accountable.