- SEC chair Gary Gensler came under criticism on X after announcing the SEC had adopted a rule made since 2008.
- Gensler said Congress directed that the SEC adopt the rule following the 2008 financial crisis.
- X users dig up accusations against Gensler, suggesting a role in the financial crisis and during his time as CFTC chair.
Gary Gensler, the chairman of the U.S. Securities and Exchange Commission, has come under criticism again following a recent post he made on X – formerly Twitter.
Gensler, who has been at the heart of the regulatory onslaught against crypto entities, tweeted that the SEC has adopted a rule Congress directed after the 2008 financial crisis. He continued that the rule is intended to “enhance the transparency of short selling of equity securities.”
However, Gensler’s post wasn’t met positively, with several users alleging the head of the SEC having a hand in the crisis. A user responded:
So say’s Gary Gensler, the genius regulator who *definitely* had no role in the financial crisis at CFTC. Gensler didn’t want to regulate credit default swaps because they were being traded by sophisticated investors. Clearly, we’re in the hands of a true regulatory mastermind.
Another user also alleged that Gensler turned an eye away from market manipulation by big Wall Street banks when he was chairman of the Commodities and Futures Trade Commission. He added that after Gensler left office, JP Morgan paid $920 million for PM market manipulation and asked why Gensler hadn’t been investigated.
The responses mirror the growing dissatisfaction of the crypto and general public against the SEC and Gensler. In particular, the SEC under Gensler has been accused of witch-hunting crypto entities, especially in its interpretation of securities laws.
Many in the crypto ecosystem are concerned that the SEC’s action may stifle innovation within the U.S. and other countries. As raised recently by Paradigm, crypto entities are requesting the agency to be more concise about the legal status of crypto assets in the country.
Meanwhile, several past SEC executives have come under fire for their roles in the early days of the crypto ecosystem. In what is called ETHGate, the officials are accused of giving Ethereum a green pass, while going after crypto assets of similar nature.
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