
Rep. Ritchie Torres (D-NY) confronted SEC Chair Gary Gensler during a Congressional hearing, challenging his stance on digital asset securities. Torres argued that Gensler's classification of NFTs as securities is inconsistent and overly broad, comparing it to calling a Yankee ticket a security. Torres also questioned the SEC's demand for the destruction of NFTs from Stoner Cats, raising First Amendment concerns. Gensler had previously stated in 2021 that he did not have the authority to regulate the digital asset industry, which Torres highlighted as misleading. Additionally, Gensler denied knowledge of 'Operation Choke Point 2.0,' despite widespread mentions of the term in discussions about anti-crypto measures. The hearing highlighted bipartisan criticism of Gensler's regulatory approach to digital assets, particularly regarding blockchain and the Howey precedent.