SEC boss Gary Gensler has long been persona non grata for many in the crypto space – at least since the US Securities and Exchange Commission initiated several measures against US companies such as Coinbase, Kraken or Paxos. In a new video, the 65-year-old once again drew mockery and malice from the community. In it, Gensler compared crypto investments to goldfish, among other things. But one after anonther.
Gary Gensler classifies individual topics from the perspective of the SEC
The Video is part of a series in which Gary Gensler classifies individual topics from the perspective of the SEC in terms of regulation. In the current one, he explains why crypto platforms should come under the supervision of the authority. His argument: By using the platforms, an investment contract is concluded between the customer and the operator. Thus, the securities laws of the USA apply, with which the companies have to be registered with the SEC.
Intermediaries for investment contracts are required to comply with securities laws & register with @SECGov.
Instead, many crypto platforms are contending that their investment contracts are something else.
The law cares about what something actually is, not what you call it.
— Gary Gensler (@GaryGensler) April 27, 2023
Gensler tries to illustrate the conflict with the crypto platforms using an example:
- Dogs must be kept on a leash in many places. If you’re stopped for an off-leash dog, you can claim it’s a goldfish, but you’ll still get the fine. The law cares about what something is and not what it will be called… In other words, you could say they (the crypto platforms, ed.) are trying to make a dog look like a goldfish.
Crypto space criticizes
The reactions of the crypto space were not long in coming. Some Twitter users reminded Gensler of his appearance at the House Finance Committee two weeks ago. In it, the SEC boss did not specify whether ether is a security or not, despite repeated inquiries.
Immediately below the video, another user posted one Contribution, which shows Gary Gensler speaking at the Massachusetts Institute of Technology (MIT) in 2018. He said at the time, “Three-fourths of the Space was not classified by the SEC as securities.”
The discussions about the SEC boss are now also reaching outside of the crypto space. A Republican MP recently openly called for Gensler’s resignation. And criticism of his approach has also come from the democratic camp, which has so far had the back of the 65-year-old, albeit in isolated cases.