Hickory Sun

North Carolina State Representative Patrick McHenry has voiced concerns over what he perceives as the Securities and Exchange Commission (SEC) Chair Gary Gensler's enforcement team's misconduct. According to McHenry, this behavior could have far-reaching implications on SEC authority beyond Gensler's focus on cryptocurrency. He also noted that despite Gensler requesting more funding for enforcement last year, a judge has recently criticized the SEC for its abusive and deceptive legal practices, calling for an end to such conduct.

"Chair Gensler's enforcement team's egregious misconduct will have broad implications on SEC authority beyond his crypto crusade," said Patrick T. McHenry,, according to X. "Gensler requested more funding for enforcement last year, now a judge calls out the SEC's abusive and deceptive legal practices. This must end."

McHenry's remarks were made in response to a post by Financial Services GOP regarding a judge's ruling against the SEC in the DEBT Box case, which led to sanctions being imposed on the commission.

Patrick T. McHenry x post | x

According to Financial Services GOP, "@GaryGensler’s SEC continues its losing streak in the courts. A judge has ruled against the SEC in the DEBT Box case—imposing sanctions on the Commission for acting in bad faith. This is one of the most alarming examples yet of Gensler’s abuse of power."

In this particular legal decision, a U.S. federal judge reprimanded the SEC for what was seen as a "gross abuse of power" during its dispute with blockchain firm Digital Licensing, also known as DEBT Box. The SEC had launched legal action against the company, accusing it of investor fraud amounting to nearly $50 million. Chief District Judge Robert Shelby condemned the SEC's conduct, accusing them of acting in "bad faith" and deliberately spreading misinformation to secure an asset freeze and temporary restraining order against DEBT Box, according to Reuters.

Representative McHenry currently serves North Carolina's 10th Congressional District, which includes parts of nine counties within the state. Now in his tenth term, he is Chairman of the House Financial Services Committee in the 118th Congress where he advocates for solutions that improve banking services and credit accessibility. Prior to his current role, McHenry served as Republican Leader and Vice Chairman of the committee, as per House.gov.