Crypto Community Criticizes Outgoing SEC Chair Gary Gensler
As Gary Gensler prepares to step down as the Securities and Exchange Commission (SEC) Chair, crypto stakeholders have expressed their discontent with his approach towards the crypto industry.
During a recent interview with Bloomberg, Gensler reiterated his concerns about the crypto space, alleging that it is filled with bad actors.
Gensler Defends SEC’s Regulatory Efforts
Gensler defended the SEC’s regulatory actions under his leadership, highlighting nearly 100 enforcement actions initiated during his tenure. He also credited his predecessor, Jay Clayton, for laying the foundation with 80 enforcement actions.
Notable enforcement cases, such as the action against Sam Bankman-Fried, were cited by Gensler as evidence of the SEC’s commitment to safeguarding investors’ interests.
Additionally, Gensler criticized the speculative nature of the crypto industry, stating that most projects lack the solid fundamentals seen in traditional financial markets.
“I’ve been around finance for over four decades, and everything in the markets trade on a mixture of fundamentals and sentiment. At any given time, I’ve never seen a field that’s so much wrapped up in sentiment and not so much about fundamentals.”
Gensler is set to leave his position at the SEC on Jan. 20.
Backlash from the Industry
Gensler’s comments have sparked backlash from prominent figures in the crypto community.
Paul Grewal, Chief Legal Officer at Coinbase, accused Gensler of alienating voters and suggested that his behavior may have influenced political shifts in swing states during recent elections.
“In swing state after swing state, his arrogance mobilized thousands and thousands of the very people he purports to protect to reject this Administration. And still, zero reflection, zero introspection.”
Attorney Bill Morgan went a step further, claiming that the SEC itself is plagued with bad actors.
The ongoing tension between the crypto industry and the Gensler-led SEC has led to significant legal costs, with the industry reportedly spending over $400 million on legal defense fees due to regulatory actions.
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