It is looking increasingly likely that Gary Gensler will be subpoenaed if he does not voluntarily provide Congress with clear regulations for digital assets and fully disclose his interactions with FTX and Sam Bankman-Fried.

On September 27, 2023, the House Financial Services Committee, chaired by Patrick McHenry, conducted an oversight hearing of the Securities and Exchange Commission (SEC), featuring testimony from SEC Chairman Gary Gensler. McHenry and the Committee Republicans criticized Gensler for what they perceived as a reckless approach to rulemaking, a disregard for capital formation, a crusade against digital assets, and unresponsiveness to Congressional oversight.

Before the hearing, Committee Republicans had sent a letter to Gensler, demanding a halt on finalizing or implementing interrelated rulemakings until their cumulative impacts were evaluated. They sought sufficient time for public and market participants to respond and comply with new regulations.

McHenry expressed frustration over what he saw as Gensler's failure to address concerns raised during his last appearance before the Committee, five months prior. He criticized the SEC’s approach to rulemaking, accusing it of jeopardizing market integrity and putting investors at risk. McHenry called for comprehensive economic analysis of proposed rules and criticized the Commission for not adequately assessing their interplay and cumulative impact.

McHenry also accused Gensler of failing to prioritize capital formation and criticized his approach to digital assets, which he believed had created confusion and harm. He mentioned bipartisan efforts in Congress to provide clear regulations for digital assets and criticized Gensler’s lack of transparency regarding interactions with FTX and Sam Bankman-Fried.

Furthermore, McHenry expressed dissatisfaction with the SEC’s lack of responsiveness to the Committee’s oversight and document requests. He warned Gensler that the Committee’s patience was wearing thin and raised the possibility of issuing a subpoena to the SEC if cooperation did not improve.

McHenry concluded by reminding Gensler of the potential lasting consequences of his actions on the SEC’s reputation, emphasizing that while Gensler’s tenure may be temporary, the repercussions of his actions could be permanent for the agency.

A subpoena of Gary Gensler by Congress would be a formal process aimed at gathering information or investigating specific matters related to the SEC’s mandate or actions. The process would involve preparation, testimony, potential scrutiny, and possible follow-up actions, with the potential to influence regulatory practices and policies.

McHenry Questions Gensler at Hearing to Conduct Oversight of the SEC: https://www.youtube.com/watch?v=UgvKYYeXhUQ

Oversight of the Securities and Exchange Commission: https://www.youtube.com/watch?v=7tnv9MRh0GM

US House committee leadership threatens to subpoena SEC over FTX docs:

https://cointelegraph.com/news/house-committee-threatens-subpoena-ftx-documents

US House committee leadership threatens to subpoena SEC over FTX docs

According to committee chair Patrick McHenry, SEC chair Gary Gensler had only provided publicly available documents related to FTX in response to a formal request.

This question resolves as Yes if a statement appears on the official SEC website (https://www.sec.gov) stating that a subpoena by a congressional committee or subcommittee has been issued to Gary Gensler, formally requesting his testimony or documents related to a specific inquiry or investigation.