After US Securities and Exchange (SEC) head Gary Gensler made a recent criticism of the cryptocurrency space’s compliance, the community quickly responded with applause.Gensler says there is a lot of noncompliance in the cryptocurrency industry in a post he shared on X (Twitter) on December 22.Insinuating that victims are left defenseless, the SEC official stated that this “undermines confidence” in the industry.The recent crypto bankruptcies have left those impacted to only “stand in line” in the legal system, Gensler emphasized.
The SEC chair’s remarks were immediately met with support from the community, which brought attention to the fact that the SEC has frequently been asked to define compliance.The community reported that the SEC has not taken a clear position by using the social platform’s Community Notes function, which enables users to fact-check posts on X.The email also mentioned how, in recent years, businesses like Coinbase have attempted to obtain regulatory clarification from the SEC.
In response to Gensler’s statement, Billy Markus, the founder of Dogecoin, stated that the SEC chair has not actually imposed any rules.Markus went on to describe Gensler as “useless in every single way.”Brad Garlinghouse, the CEO of Ripple, also addressed Gensler’s remarks.The Ripple executive labeled Gensler a “political liability” whose actions undermined the SEC’s credibility and referred to the post as “stunning hypocrisy”.
The SEC expressed its “deep regret” for some of the mistakes it made during an enforcement action in a new filing that same day.According to Coinbase’s chief legal officer, Paul Grewal, the SEC may “regret” its mistakes, but its chair is “browbeating an entire American industry.”Why should a judge or taxpayer believe their regrets, the attorney questioned.