Crypto Community Confronts SEC Chair Over Criticism on Industry's Regulatory Noncompliance
Summary:
U.S. SEC Chair Gary Gensler faced immediate backlash from the crypto community after criticising industry's regulatory noncompliance on Twitter. Responding users highlighted the SEC's lack of clear compliance guidelines. Dogecoin's creator, Billy Markus, and Ripple's CEO, Brad Garlinghouse, were among those criticising Gensler's statements. Meanwhile, Coinbase's Chief Legal Officer, Paul Grewal, questioned the SEC's sincerity about admitting past errors given Gensler's continued criticism of the industry.
Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), faced a quick backlash from cryptocurrency enthusiasts for his recent criticism of the industry's conformity to regulations. On December 22, Gensler took to Twitter to contend that the crypto space is rife with noncompliance. The SEC chief stated that such disregard for regulations "erodes trust" in the field and hinted that it leaves those affected powerless. Further, Gensler emphasised how the victims of recent cryptocurrency-related bankruptcies can merely "queue in court".
The immediate reaction from the community was harsh. They underscored that the SEC has been repeatedly asked to deliver clear guidelines for complying with regulations. Leveraging Twitter’s Community Notes tool, which allows users to scrutinize posts for factual accuracy, they pointed out the SEC's lack of a clear position. They also noted that companies like Coinbase have been seeking regulatory clarity from the SEC for several years with no avail.
Billy Markus, the creator of Dogecoin (DOGE), responded to Gensler's tweet by contending that the SEC chief hasn't implemented any actual rules. Markus harshly labeled Gensler as "ineffective in every possible way."
Brad Garlinghouse, CEO of Ripple, also chimed in on Gensler's criticisms. He dubbed the tweet as "dazzling hypocrisy" and described Gensler as a "political hindrance" whose actions have damaged the credibility of the SEC.
On the same day, the SEC expressed "deep regret" for certain mistakes it had committed during an enforcement process in a recent legal filing. Paul Grewal, Coinbase's chief legal officer, pointed out the contradiction of the SEC voicing regret for its blunders while its chair is "berating an entire American industry." He questioned the sincerity behind the agency's expressed regret and why anyone, taxpayer or judge, should believe it.
Published At
12/22/2023 4:29:59 PM
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