Crypto community members were quick to clap back at United States Securities and Exchange Chair Gary Gensler for his latest jab at the space’s compliance.
On Dec. 22, Gensler shared a post on X (Twitter) asserting that there’s a lot of noncompliance in crypto. The SEC official said this “undermines confidence” in the space and implied that this leaves victims helpless. Gensler underscored that people who have been affected by the recent crypto bankruptcies can only “stand in line” in the courts.
There is a lot of noncompliance in the crypto space. It undermines confidence when so many people have been hurt and all they can do is stand in line in the bankruptcy court. Further, this can make it hard for the good faith actors to compete. pic.twitter.com/9L1WKa4R6S
— Gary Gensler (@GaryGensler) December 21, 2023
The community instantly responded to the SEC chair’s sentiments, highlighting that the SEC has been constantly asked to clarify what compliance means. Using the social platform’s Community Notes feature that allows users to fact-check posts on X, the community shared that the SEC has not shared a clear stance. The note also pointed out that companies like Coinbase have tried to get regulatory clarity from the SEC in the last few years.
Dogecoin (DOGE) creator Billy Markus also replied to Gensler’s post, saying that the SEC chair has not established actual rules. Markus also proceeded to call Gensler “useless in every single way.”
Ripple CEO Brad Garlinghouse also commented on Gensler’s statements. The Ripple executive described the post as “stunning hypocrisy” and called Gensler a “political liability” whose actions destroyed the SEC’s integrity.
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On the same day, the SEC said in a new filing that it “deeply regrets” certain errors that the agency made during an enforcement proceeding. Paul Grewal, chief legal officer of Coinbase, pointed out that, while the SEC claims to “regret” its errors, its chair is “browbeating an entire American industry.” The lawyer questioned why any taxpayer or judge should believe in those regrets.
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