Crypto Community vs. Gensler: The Latest Twist
By Lesia Dubenko 213 25 May 2023
Gary Gensler isn’t a fan of crypto. The crypto community, in turn, isn’t a fan of Gensler.
The U.S. Securities and Exchange Commission (SEC) is delivering on its promise to scrutinize the crypto realm, with its Chairman Gary Gensler recently attending a congressional hearing on the matter.
During it, he reaffirmed that most crypto tokens are securities, meaning that crypto intermediaries transact in securities and must register with the SEC. “It’s the law; it’s not a choice,” he said.
His actions received a widespread backlash within the crypto community on Twitter, which launched the #FireGaryGensler hashtag. The posts featured under this hashtag feature an array of crypto-friendly figures. Tony Edward, the author of the Thinking Crypto Podcast, is among the most vocal.
In a series of tweets, he shared examples of heavy criticism of the SEC and Gary Gensler. The highlights include a video of Congressman Patrick McHenry grilling Gensler on his contradictory views on digital assets, wherein he points out the ever-changing definition of Ethereum: a commodity or a security.
Other tweets feature videos mocking Gary Gensler, alluding to his incompetence, and a reminder that reads, “Remember folks, corrupt regulator @GaryGensler didn't do anything to stop scammers." Sam Bankman-Fried and FTX, Celsius and Alex Mashinsky, Do Kwon Terra Luna, and 3 AC, but he is attacking regulated and legit entities/projects that are trying to do the right thing.”
Since the start of 2023, the SEC has taken an aggressive stance toward crypto. Foe example, in February, the SEC charged Kraken with failing to register the offer and sale of their crypto-asset staking-as-a-service program. As a result, Kraken agreed to pay $30 million in disgorgement, prejudgment interest, and civil penalties.
Read more about the SEC’s approach to crypto here.