Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), recently responded to calls from the crypto industry for his recusal from decisions related to this area. As the debate over classifying cryptos as securities rages on, Gensler’s response continues to elicit strong reactions from the community, which is desperate to find common ground with US regulators.
Gensler rejects calls to recuse himself
A few weeks ago, the Blockchain Association, which advocates for cryptocurrency interests, published an article asking Gary Gensler to recuse himself from certain crypto-related decisions.
The cryptocurrency lawyers gathered in this association have expressed concerns about Gensler’s ability to provide a fair valuation. They cited his earlier statements that all digital assets except bitcoin are considered securities.
Jake Chervinsky, chief policy officer for the association, pointed out that Gensler’s strong stance that all digital assets except bitcoin are securities prevents him from approaching enforcement decisions with fairness and objectivity. .
However, this Wednesday, at a press conference following a meeting of the Money Market Funds and Brokerage Rules Committee, Gary Gensler responded to calls by refusing to recuse himself.
According to a report of The Block, the SEC Chairman asserted that he was “fully compliant” with the law and underscored his commitment to protecting investors by carefully reviewing the facts and circumstances surrounding each token and each platform.
” I take an oath, along with my fellow commissioners, to uphold the law passed by Congress and how the courts interpret it (…). This is really about protecting the investing public and reviewing the facts and circumstances of each of the individual tokens and the platforms themselves.“said Gensler.
Regulatory Concerns About Coinbase
But that’s not all ! The SEC Chairman also touched on another point of importance: the choice of large companies, such as BlackRock and Fidelity, to work with Coinbase as a partner to monitor deposits of spot bitcoin ETFs. Despite accusations from the SEC that Coinbase acted like an unregistered exchange or broker, these companies have decided to maintain their collaboration with the American Exchange.
Although Gensler avoided commenting further on this subject, he reiterated his more general concerns about the exchanges and their trading practices, which he considers potentially conflicting. Additionally, he warned against market manipulation and lack of transparency.
The crypto industry continues to advocate for clear and balanced regulation that promotes innovation while protecting investors. The situation is therefore still evolving and it will be interesting to follow future developments in this area.
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