- Gary Gensler, SEC Chairman, was criticized by Cryptolaw US for alleged negligence in overseeing the cryptocurrency market.
- Gensler’s recent Twitter thread warns investors about the risks and legal complexities in crypto investments following major ETF filings.
- The crypto community reacts to Gensler’s comments, questioning the appropriateness of using a personal account for official advisories.
Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), has recently come under scrutiny from Cryptolaw US, a cryptocurrency regulation-focused media outlet. The organization voiced its discontent on Twitter, critiquing Gensler’s methods of regulating the cryptocurrency market. Their tweets specifically target what they see as his mishandling of the Sam-Bank-Fried FTX fraud case and insinuate that he is not fully committed to the law.
This wave of criticism was set off by a series of tweets put out by Gensler himself. He had, through one of those tweets, cautioned the intending crypto investors concerning the risks involved therein and their intricacies of law and regulations. He noted many crypto services may not fully comply with the federal securities laws and that those protections will leave a gap in the space for investors concerning essential information.
Gensler’s advisory comes just as major asset managers, including BlackRock, ARK 21Shares, and VanEck, have filed amended S-1 forms, a move seen as a precursor to the potential approval of Bitcoin ETFs. The crypto community waits with bated breath for the SEC’s decision, more so by January 10, which is the ultimatum for responses to the recent filings.
Gensler’s comments did not offer direct insights into his stance on the Bitcoin ETFs. However, this has led to conjecture within the crypto community, with some interpreting his warnings as a prelude to imminent ETF approvals.
In his warnings, Gensler has consistently emphasized the risks and the unpredictable nature of crypto investments, including the potential for platform insolvency. He has also shed light on fraudulent activities, like bogus coin offerings and pyramid schemes, which predominantly target individual or retail investors, highlighting the perils associated with these digital investments. These statements align with his previous advisories, where he has always urged crypto investors to be cautious.
Gensler’s approach has also drawn criticism from within the crypto community. One user questioned why he was issuing these warnings from a personal Twitter account instead of through official SEC channels, suggesting a potential conflict between his personal profile and his official duties.
As the decision on spot Bitcoin ETFs draws near, the crypto market is watching closely. Gensler’s method of handling the review process, which he describes as “time-tested,” remains a hot topic of discussion, particularly in light of the SEC’s extensive authority in these matters.
