Prominent figures in the cryptocurrency space have continued to remark on the implied intensifying crypto-hostile atmosphere that was expressed by the US SEC Chair Gary Gensler on Tuesday, during the agency’s most elaborate commentary about its view on the cryptocurrency market.
In so many words, Gensler said that the SEC stands on the various sectors of the crypto market like DeFi, centralized and decentralized crypto trading, stablecoins, security tokens, crypto-related financial products like ETFs, and crypto lending, is more regulation.
“Right now, we just don’t have enough investor protection in crypto. Frankly, at this time, it’s more like the Wild West.”
Gensler also said that emerging technologies in the financial sector need to adhere to the existing goals already established for the good of the public.
“As new technologies come along, we need to be sure that we’re achieving our core public policy goals.”
US SEC Deliberately Creating Confusion In The Crypto Market?
The US SEC’s slow-moving pace around crypto-assets definition and market regulation have many years left developers exposed to possible future regulatory hurdles due to high levels of uncertainty.
According to the co-founder of TechCrunch and Crypto enthusiast Michael Arrington, the speech indicated that the US SEC is more concerned with controlling the market rather than establishing clear guidelines to help crypto developers innovate without regulatory difficulties.
“One thing Gensler made clear today: he thinks all of crypto is under his control, and he’s eager to expand the power of the SEC. He said the law is clear based on 75 enforcement actions, but seems to be walking back clarity on ETH. All I see is more muddy water.”
Ripple CEO Brad Garlinghouse, whose observation is linked to the ongoing SEC lawsuit against XRP, said a pattern might be emerging of the US SEC’s deliberate sabotage of XRP and other Cryptocurrencies through its leadership.
Garlinghouse said that in 2018, Bill Hinman, who was the Director of the SEC’s Division of Corporate Finance at the time, said that ETH wasn’t a security, a statement which the former SEC Chair Jay Clinton agreed to.
“But just weeks ago, Hinman filed a sworn affidavit in Court saying the SEC still has “not taken any position or expressed a view” on ETH’s status…so how is the market supposed to have clarity?!”
Is it Personal with XRP?
In response to Garlinghouse, crypto market investor Mr. Whale said that Jay Clinton, despite not making a lot of headway with crypto regulation during his time as SEC Chair, resigned shortly after the US SEC filed a lawsuit against Ripple’s issuance of XRP as a security.
“Jay Clanton resigning the day after they announced the Ripple lawsuit, then going on to work at a crypto firm that deals largely with Ethereum is a blatant politically motivated attack to suppress innovation of its largest competitor.”
Clayton, who rejected several Bitcoin ETFs applications during his time as SEC Chair now serves on the Board of One River Asset Management firm. The firm which recently submitted an ETF filing for its proposed One River Carbon Neutral Bitcoin Trust, as the latest crypto-focused firm to apply to the US SEC for a Bitcoin ETF.A