During his congressional testimony, SEC Chairman Gary Gensler criticized the cryptocurrency industry for commingling funds, calling it a recipe for disaster. He did not disclose the SEC’s next moves regarding spot bitcoin exchange-traded funds (ETFs) and left the industry uncertain about the SEC’s decision and timeline. Chairman Patrick McHenry also criticized the SEC for targeting the digital assets ecosystem aggressively, causing confusion and long-term damage. Gensler emphasized that Bitcoin is not considered a security but hinted at potential staffing reductions due to a government shutdown, leading to delays in SEC filings.

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