Typically, the Securities and Exchange Commission avoids risking its credibility in appellate courts. However, the current SEC under Chair Gary Gensler operates differently. This SEC has an agenda against cryptocurrencies that goes beyond regulation. They are leveraging their authority to hinder and delay the industry’s progress, imposing their own biases where possible.
Gensler may personally disapprove of Bitcoin, but whether or not you choose to invest in it should be your decision, not the SEC’s. The actions under Gensler’s leadership at the SEC indicate a culture of bad faith toward crypto.
Consider the approval of spot bitcoin ETFs in January, which only occurred after years of earnest applications from the crypto industry. The SEC was unable to justify its previous rejections of spot bitcoin ETFs, which was truly embarrassing. The court ruled the SEC’s stance as “arbitrary and capricious,” forcing Chair Gensler to approve a bitcoin ETF he had been determined to block.
Bitcoin ETFs from firms like BlackRock, Fidelity, and Franklin Templeton offer a secure and straightforward method for U.S. investors to purchase Bitcoin. These ETFs meet the SEC’s investor protection standards and serve the best interests of the investors the SEC is pledged to protect. Three months post-launch, bitcoin ETFs boast $61 billion in assets.
Consider the recent SEC vs. DEBT Box debacle. Two SEC attorneys spearheading an anti-crypto action were compelled to resign after a federal judge sanctioned the agency for “gross abuse of power.”
The SEC misled the court to secure a temporary restraining order against the crypto firm DEBT Box. This ex parte action was taken without any notice to DEBT Box, thereby violating the court’s trust.
Forced to resign? After such a fiasco, the SEC should have deactivated the lawyers’ key cards before they even returned to the office. However, it’s possible they were just following orders.
What Lies Ahead?
The persistent communication gap between regulators and crypto participants has existed for years and must be addressed. Many of the challenges within the crypto space could be managed more effectively if regulators were willing to engage with the industry in good faith.
In 2021, Coinbase CEO Brian Armstrong discovered that the SEC was the only government entity unwilling to meet with his company. Coinbase, being a public company, now finds itself in litigation with the SEC over issues that could have been amicably resolved through discussions in 2021.
Crypto: Why Should We Worry?
Cryptocurrency represents a transformative shift that the U.S. typically excels in leading and dominating. Capital and talent are flocking to this burgeoning industry.
Crypto channels capital to break through seemingly insurmountable barriers to entry. Take the U.S. dollar stablecoin, a digital version of the dollar with over $140 billion in circulation that is revolutionizing banking and payments. It also promotes the globalization of the dollar, benefiting all Americans.
We need regulators who will engage in good faith with the responsible leaders of the crypto industry. It’s time to move beyond unfounded regulatory obstruction. Farewell, Gary Gensler; welcome, genuine reform.
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