5th November 2022 > > Gary Gensler.

tl;dr

Gary Gensler, Chair of the SEC, is feeling the heat.

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That is a stunning overnight move.

Curious Cryptos’ Commentary – Gary Gensler, Chair of the SEC

Regular readers of the CCC are fully aware of the machinations of Gensler and the SEC, in their ham-fisted and entirely inappropriate approach to trying to claim regulatory hegemony over all cryptos bar BTC.

The most prominent example is the ongoing legal battle as to whether XRP (Ripple) is a security as the SEC claims, or it is a commodity, as claimed by Ripple Labs, Inc.

Commissioner for the SEC, Hester Pierce, has recently ramped up the pressure on Gensler (see CCC 1st November 2022) describing the agency’s approach as “ … it’s just not a good way of regulating.”

And there is more to come.

Four US House Representatives have sent a letter to Gensler stating that his tenure as Chair of the SEC “ … has been characterized by regulatory hypocrisy and inconsistency”.

Ouch indeed.

The letter alleges that when Gensler was Chair of the CFTC (Commodities and Futures Trading Commission) he used his personal email over SEVEN THOUSAND times for official business. Now that he is at the helm of the SEC:

“Recent reports suggest that SEC officials are using ‘off-channel’ communications platforms, such as Signal, Whatsapp (sic), Teams, and Zoom, for official business and without producing these records in response to open-record requests.”

Just ask Suella Braverman, still Home Secretary (just) for the UK whether one should use one’s personal email for official business or not.

This error of judgement by Gensler and other members of the SEC is amplified by the regulatory action taken by the SEC against firms in the private sector (not simply cryptos) for failing in the same regard:

“While the SEC is failing to comply with federal transparency and record-keeping laws, the SEC is aggressively enforcing record-keeping laws on private businesses. The SEC recently charged 16 firms more than $1.1 billion combined for allegedly failing to maintain and preserve electronic communications.”

Though the letter is openly political in nature (it appears to try to taint Joe Biden by association, a tenuous link at best) these accusations, if true, strike at the heart of Gensler’s authority and reputation.

Crypto enthusiasts worldwide are eagerly looking forward to the next instalment of this story.

Curious Cryptos’ Commentary – SEC and XRP (Ripple)

A tweet from Ripple Labs, Inc. CEO Brad Garlinghouse claims:

“For those of you keeping count, 12 (!) amici briefs submitted. It’s unprecedented (I’m told) to have this happen at this stage. They each explain – in their own unique way – the irreparable harm the SEC will do to every facet of the US crypto economy if it gets its way.”

Yet more pressure on Gensler and his antics.