- Sam Lyman accused the SEC of not protecting retail investors’ interests in its regulations.
- Lyman said the SEC has been advancing Wall Street and political interests.
- He stated that the tension between the SEC and the crypto ecosystem highlighted this regulatory capture.
Forbes contributor and long-time crypto advocate Sam Lyman, in a recent interview, accused the U.S. Securities and Exchange Commission of not protecting retail investors’ interests in its regulation of crypto entities.
Lyman asserted that the SEC, under Gary Gensler, has been advancing Wall Street and political interests. “The revolving door between DC and Wall Street spins so fast, it could generate its own electricity,” he said, alluding to their closeness.
He continued that Gensler’s actions aren’t surprising, considering he made “millions on Wall Street” before foraying into politics. Lyman said:
The leadership at SEC, people like Gary Gensler, who do they rub shoulders with every day? Is it the grandma who just bought her bitcoin, is it the teenager who just downloaded Coinbase for the first time, or is it their buddies back in Wall Street?
According to the advocate, recent tensions between the SEC and the crypto ecosystem have highlighted the gaps in the regulator’s actions. He continued that while these gaps have gone unnoticed for long, “it has been laid bare by cryptocurrency as a movement.”
Lyman said people are starting to realize that the SEC has been more focused on regulatory enforcement rather than providing clarity. He added that the recent actions of the SEC towards Bitcoin ETF approvals and the attacks on Coinbase and the XRP army underscore this.
Furthermore, the crypto advocate asserted that the regulatory capture at SEC is why a large collapse like that of the FTX could have happened. However, he noted that the attitude of political elites toward the SEC may be changing, given recent back-and-forths between them.
Lyman’s statements mirror a growing resentment towards the SEC, especially among crypto circles. Several allegations have been leveled against the regulator, including an accusation of deliberately witch-hunting crypto entities.
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